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Romania
 

Country
GDP per Capita: $1,713 GDP (USD Billions): 38.2 Inflation (CPI): 55% Currency: Leu (ROL)=100 Bani USD Conversion Rate: 1USD=18,945 LEU Population (Millions): 22.3 Population Growth Rate: (0.2)% Labor Force (Millions): 10.3 Unemployment: 9.2% Language: Romanian, Hungarian, German Major Industries: mining, timber, construction materials, metallurgy, chemicals, machine building, food processing, petroleum production and refining Political System: Democracy Economic System: Free Market Literacy Rate: 97% President: Emil Constantinescu, Prime Minister: Mugur Isarescu Capital: Bucarest Facts: A potential candidate for the next round of NATO expansion

Romania

After the collapse of the Soviet Bloc in 1989-91, Romania was left with an obsolete industrial base and a pattern of industrial capacity wholly unsuited to its needs. In February 1997, Romania embarked on a comprehensive macroeconomic stabilization and structural reform program, but reform subsequently has been a stop-and-go process. Restructuring programs include liquidating large energy-intensive industries and major agricultural and financial sector reforms. Today, Romania is continuing its difficult transition to a market-based economy. GDP contracted by an estimated 7.3% in 1998 after a 6.6% decline in 1997. Tight monetary policy and slower exchange rate depreciation earlier in 1998 helped lower inflation to an estimated 41% from 152% in 1997. The large current account deficit and concerns about meeting debt payments in 1999 contributed to increased pressure on the exchange rate towards the end of 1998. Replacing the IMF standby agreement (suspended because of lack of progress on structural reforms), servicing large debt payments, and bringing the budget under control are key priorities for 1999. SOURCE CIA FACTBOOK

Comment:

Rich agricultural lands, domestic energy sources (coal, oil, natural gas, hydro), and expanded Tourism in the Black Sea and in the mountains, shape Romania's economy as one of diverse investment potential. The government has set forth reforms in numerous sectors, paying special attention to industry privatisation and restructuring. Sectors include: Oil and gas, electrical power, Oil drilling equipment and shipbuilding.