Romania is the second largest Eastern European country in the EU, following Poland. The Romanian retail market is experiencing tremendous growth. According to Eurostat, the Romanian retail trade expanded by 13.9 percent in 2007, or seven times the rate of growth in the European retail market as a whole. While this growth is impressive it is in part due to the low starting point. Only recently has modern retail reached Romanians outside the major cites. 2007 saw a major push of retail chains into smaller Romanian cities. With a greater proportion of the Romanian population having access to modern retail, agri-food imports have surged. Although the EU market is largely closed to U.S. exporters of meat and meat products, promising export prospects remain. The best of these are distilled spirits, almonds, and fruit juice.
Romania has continued its macroeconomic stability and growth. Over the past few years the government has made the necessary economic reforms to gain entrance to the European Union. This monumental event was accomplished on January 1st 2007. As with many of its neighbors, Romania’s accession to the EU has lowered the Government appetite for reform. This is likely to dampen long term growth, but with some of the lowest costs in the EU, GDP growth in Romania will likely out perform most of its EU competitors.
The economy continued to grow in 2007, though the rate slowed to 6 percent compared to 7.7 percent in 2006. The service and construction sectors continue to be the most important engines for growth in Romania.
Romania’s economy continues to converge toward European norms. Services now represent about 50 percent of the economy, up from 46 percent in 2004. As the economy expands this number is likely to rise. Agriculture saw its contribution to the national economy shrink yet again. A combination of poor weather conditions and delayed government reforms has seen the agricultural sector (including forestry) decline from 13 percent in 2001 to only 6.6 percent in 2007. Regardless of its relative decline the agricultural sector still employs roughly a third of the population and is therefore important to the overall economic well-being of the country.
Romanian GDP per capita rose to USD 7,800 in 2007 (up from USD 1,585 in 1999), Romania is a middle-income country. As a result of the increasing food-products prices, determined by an extremely low crop production and increasing world prices, the inflation rate rose from 4.9 percent in 2006 to 6.6 percent in 2007. The trade deficit widened by 45 percent in 2007, to USD 29 billion (18 percent of GDP) – tripling in only three years (2004-2007).
Romania has continued its macroeconomic stability and growth. Over the past few years the government has made the necessary economic reforms to gain entrance to the European Union. This monumental event was accomplished on January 1st 2007. As with many of its neighbors, Romania’s accession to the EU has lowered the Government appetite for reform. This is likely to dampen long term growth, but with some of the lowest costs in the EU, GDP growth in Romania will likely out perform most of its EU competitors.
The economy continued to grow in 2007, though the rate slowed to 6 percent compared to 7.7 percent in 2006. The service and construction sectors continue to be the most important engines for growth in Romania.
Romania’s economy continues to converge toward European norms. Services now represent about 50 percent of the economy, up from 46 percent in 2004. As the economy expands this number is likely to rise. Agriculture saw its contribution to the national economy shrink yet again. A combination of poor weather conditions and delayed government reforms has seen the agricultural sector (including forestry) decline from 13 percent in 2001 to only 6.6 percent in 2007. Regardless of its relative decline the agricultural sector still employs roughly a third of the population and is therefore important to the overall economic well-being of the country.
Romanian GDP per capita rose to USD 7,800 in 2007 (up from USD 1,585 in 1999), Romania is a middle-income country. As a result of the increasing food-products prices, determined by an extremely low crop production and increasing world prices, the inflation rate rose from 4.9 percent in 2006 to 6.6 percent in 2007. The trade deficit widened by 45 percent in 2007, to USD 29 billion (18 percent of GDP) – tripling in only three years (2004-2007).
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