 |
|
 |
 |
 |
 |
|
|
Info
Regions
|
|
|
|
|
|
|
|
|
|
|
|
|
Country Guide > Europe > Romania | |
|
Business Profile Economy Romania is a major producer of wheat and maize, and grows vegetables, fruit, sugar beet and vegetable oil seeds; wine-making is still widespread and many farms also breed livestock. Communist-era economic policies favoured heavy industry and the agricultural sector has since found it difficult to catch up with European standards. Most land has now been transferred to private ownership. The previously neglected forestry and fishing industries are being developed under long-term programmes. Overall, the contribution of the agricultural sector to GDP has declined from about 33 per cent in 1990 to its present level of 14.8 per cent. Post-communist industry has undergone a similar contraction, and now accounts for 28 per cent of GDP (down from nearly 60 per cent in 1990). Romanian industry produces industrial and transport equipment, metals, furniture, chemical products and manufactured consumer goods, but the most important sector is oil, natural gas and oil-derived products (petrochemicals, paints and varnishes). The mining industry produces coal, bauxite, copper, lead, zinc and iron ore. The Romanian economy was crippled under the Ceaucescu regime, not least by its leader’s obsession with paying off the whole of the country’s national debt (something rarely considered, let alone attempted, by most governments). Since the 1989 revolution, successive governments have concentrated on turning Romania into a market economy. Progress has been difficult, hampered by the economy’s already weak condition and political instability. In the early- and mid-1990s, Romania came close to economic meltdown as the economy contracted by an average of 7 per cent annually and inflation often reached 100 per cent. The situation has improved since 2000, when Romania registered positive growth. GDP is now increasing at an annual rate of 5 per cent; inflation is 22 per cent and official unemployment has fallen to 8 per cent (although there is a large informal economy). IMF and World Bank support have been forthcoming under the usual conditions. Romania has also had access to loans from the European Bank for Reconstruction and Development to which it belongs as a ‘country of operation’. The Romanians’ ultimate objective is membership of the European Union, with whom it conducts over 60 per cent of its trade (Italy and Germany are the largest individual trade partners). The country originally hoped to join along with the 10 other countries that joined in May 2004. Unfortunately, it was unable to meet the accession criteria in time and now hopes to join, along with neighbouring Bulgaria, in 2007. Business A suit is essential at all business meetings and only on very hot days are shirtsleeves acceptable. English, German and French are used in business circles. Appointments are necessary and punctuality expected. Business cards are widely used. Office hours: Mon-Fri 0700-1530. Commercial Information The following organisation can offer advice: The Chamber of Commerce and Industry of Romania and Bucharest, Bulevardul Octavian Goga 2, Sector 3, 74244 Bucharest (tel: (1) 322 9535; fax: (1) 322 9542; e-mail: ccir@ccir.ro; website: www.ccir.ro). Conferences/Conventions For information, contact the Romanian Convention Bureau, Calea Victoriei 118, 4th Floor, Suite 407, Sector 1, 70179 Bucharest (tel: (21) 314 4100/4102; fax: (21) 314 4101; e-mail: office@conventionbureau.ro; website: www.conventionbureau.ro). |