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Dawn of the Romanian EmpireRomania¢s richest man, Dinu Patriciu, is taking advantage of the turmoil among small, London-listed companies to build a pan-European investment empire....
Romanians are less and less willing to save or the incomes they have available for saving are dwindling, reveal data from the NBR, which point to the lowest annual rise for deposits in RON - of 15.5%....
Overview
With a surface area of 238,391 km², Romania is the largest country in southeastern Europe and the twelfth largest in Europe. The country borders Hungary and Serbia to the west, Ukraine and Moldova to the northeast, Bulgaria to the south and has a coastline on the Black Sea.
Population & Population Distribution
According to the 2002 census, Romania has a population of 21,680,974 and, similarly to other countries in the region, is expected to gently decline in the coming years as a result of sub-replacement fertility rates.
The largest Romanian cities are: Bucharest (Bucureşti) with 2,082,334 inhabitants, Iaşi with 320,888, Cluj-Napoca with 318,027, Timişoara with 317,660, and Constanţa with 310,471.
Age structure - National
0-14 years: 18% (male 2,111,320; female 2,015,347)
15-64 years: 68% (male 7,597,958; female 7,707,498)
65 years and over: 14% (male 1,237,368; female 1,741,630) (2000 est.)
Urban-rural ratio - National
Urban - 52.70%
Rural - 47.30%
Population growth rate - National
The population growth rate is -0.12% (2006 estimate).
In common with many Eastern European countries, Romania has experienced a decline in population in recent years. The population fell by 1,129,000 or 4.95% in the decade 1992-2002. In three counties, Caraş-Severin, Hunedoara and Teleorman, the population fell by more than 10% over the same period.
Only two counties, Ilfov (which is within the Bucharest development area) and Iaşi (on the border with Moldavia) saw their population increase. This can also be considered an indicator of the progressive urbanization of the country as the national economy moves structurally from agricultural to service provision and job opportunities in urban centers increase.
Economy
Romania, has been a slower developer than other former communist countries of eastern Europe. With a GDP per capita (PPP) of $10,661 in 2006, Romania is considered an upper-middle income economy and has been part of the European Union since 1 January 2007.
After the Communist regime was overthrown in late 1989, the country experienced a decade of economic instability and decline, led in part by an obsolete industrial base and a lack of structural reform. From 2000 onwards, however, the Romanian economy was transformed into one of relative macroeconomic stability, characterised by high growth, low unemployment and declining inflation.
In 2006, according to the Romanian Statistics Office, GDP growth was recorded at 7.7%, one of the highest rates in Europe. Unemployment in Romania was at 4.5% in April 2007 which is very low compared to other middle-sized or large European countries such as Poland, France, Germany and Spain. Foreign debt is also comparatively low, at 20.3% of GDP.
Exports have increased substantially in the past few years, with a 25% year-on-year rise in exports in 2006. Romania's main exports are clothing and textiles, industrial machinery, electrical and electronic equipment, metallurgic products, raw materials, cars, military equipment, software, pharmaceuticals, fine chemicals, and agricultural products (fruits, vegetables, and flowers). Trade is mostly centred on the member states of the European Union, with Germany and Italy being the country's single largest trading partners. The country, however, maintains a large trade deficit, as it imports 37% more goods than it exports.
The economy is predominantly based on services, which account for 55% of GDP, even though industry and agriculture also have significant contributions, making up 35% and 10% of GDP, respectively. Additionally, 32% of the Romanian population is employed in agriculture and primary production, one of the highest rates in Europe.
Since 2000, Romania has attracted increasing amounts of foreign investment, becoming the single largest investment destination in Southeastern and Central Europe. Foreign direct investment was valued at €8.3 billion in 2006. According to a 2006 World Bank report, Romania currently ranks 49th out of 175 economies in the ease of doing business, scoring higher than other countries in the region such as Hungary, Poland and the Czech Republic. Additionally, the same study judged it to be the world's second-fastest economic reformer in 2006.
The average gross wage per month in Romania is 1,367 lei as of March 2007, equating to €405.11.
Photo gallery
Romania in photos
