| |
|
|
| |
Home
>
World
> 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. The farming sector as a whole suffered from lack of investment due to communist-era economic policies which favoured heavy industry. During the first half of the 1990s, the vast majority of agricultural land was transferred to private ownership – in many cases to the original owners prior to Soviet-era collectivisation. Forestry and fisheries are being developed under long-term programmes. The contribution of the agricultural sector to GDP has declined from about 33 per cent in 1990 to its present level of 14 per cent.
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.
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. Annual inflation often reached 100 per cent during the 1990s as successive governments struggled to maintain the value of the Leu and put a brake on the economy’s contraction, which averaged seven per cent between the 1989 revolution and 1998. Since then, growth has slowly picked up, reaching four per cent in 2002 but persistent inflation (currently 24 per cent) and budgetary problems forced the government to approach the IMF for financial support. Economic policy now focuses on privatisation and fiscal reform as conditions of IMF support. 11 per cent of the workforce is unemployed. Romania has signed trade and co-operation agreements with the EU and the European Free Trade Association and has access to loans from the European Bank for Reconstruction and Development to which it belongs as a ‘country of operation’. Romania applied to join the European Union but proved unable to meet the accession criteria in time to join the next wave of entrants (which includes eight countries from Central and Eastern Europe) in 2004. Romania now hopes to join along with Bulgaria in 2007.
Romania's largest trading partners are Germany and Italy, followed by Russia and France.
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, Fourth Floor, Suite 407, Sector 1, 70179 Bucharest (tel: (1) 314 4100 or 314 4102; fax: (1) 314 4101; e-mail: rcb@ines.ro; website: www.rotravel.com/rcb).
Copyright © 2003 Columbus Publishing Ltd.
Terms and Conditions apply.
|
|
|
|
|
