Romanian Economy

In this two pages we will talk about Romanian Economy and different factors which influence it. Firstly, I must say that Romania has a population of 22 millions people, so it’s not a big country. In fact, Romania is the 52-nd placed in the world. Accordind to this fact, our PIB is almost 170 billion USD, which means actually  the 70-th place in the entire world.

The main occupation in my country is other services (42 percent), followed nearly by agriculture (35 percent) and finally industry, with 23 percent.

The export is almost 68 billions USD and we export mainly to Germany ( 19 %), Italy (13%),  France (6%), Turkey, Hungary, UK and others. The main exported things are machinery and equipment, textiles and footwear, metals and metal products, etc.

The imports are bigger than exports ( a thing that I am not proud of) and values approximately  80 billions USD. The main ‘import partenerns’ are Germany (17%), Italy (12%), France (8%), Turkey, Hungary, China, etc. We import especially machinery, usual goods, featwear, etc.

The most important branches of industry are the oil industry and natural gas. The main oil resources are in the Carpathian foothills, near Ploiesti , at the entrance from Step Predeal. Oil production was controlled rigidly by the Romanian government, although there are some foreign companies with interests in excess of this. Total oil production was 6.24 million tons in 1939 . 

Tobacco that originated in the bulk of the Danube Plain was of poor quality, but it was the main source of income for local people. Compared with Balkan tobacco, tobacco leaf had a poor Romanian and was untreated.

In the automobile industry, is producing oil equipment for land and marine drilling platforms in Ploiesti , Targoviste , Bacau , Bucharest and Galati , mining machinery in Baia Mare , Petrosani and Sibiu , machine tools in Bucharest, Oradea , Arad , Rasnov and Targoviste and fine mechanics products industry.

Tractors are produced in Brasov , Craiova, Miercurea-Ciuc , and other agricultural machinery in Bucharest, Piatra Neamt , Timisoara and Botosani . Locomotives are produced in Bucharest and Craiova, wagons Arad , Caracal , Drobeta-Turnu Severin , cars in Pitesti, Craiova, Campulung Muscel , trucks buses from Brasov to Bucharest ships in Constanta , Giurgiu , Olteniţa and aircraft in Bucharest, Bacau , Brasov and Craiova.

Before 1990 , Romania produced over 40,000 tractors per year. In 2001 , their number had fallen to 5,300 pieces, and in 2006 reported domestic companies to manufacture 3,300 units . After closing the plant in Brasov, in 2007, the domestic industry has collapsed to just a few dozen units per year. Domestic production is performed by Mat Craiova and Mechanics Ceahlău . 

Electronics and electrical industry is represented by companies located mainly in Bucharest, Iasi , Timisoara , Craiova , Pitesti .

The chemical industry has developed in recent decades because of a wide range of raw material in the country: quantities of salt, sulfur, potassium, resinous wood, reeds, gas, livestock products. Salt processing industry has developed Borzeşti, Govora,  Târnăveni and Giurgiu. Sulfuric acid is produced in Baia Mare , Zlatna , Copşa Minor , Turnu Magurele , Călugărească Valley and Năvodari .

Petrochemical industry produces synthetic rubber from petrochemical plants to trees and Borzeşti, plastics in Ploiesti, Fagaras , trees, Borzeşti, Pitesti, synthetic yarn and Botosani Săvineşti, Roman, Iasi. Chemical and pulp and paper industry are represented by numerous centers throughout the country. It produces drugs and cosmetics, dyes, paints and detergents.

The construction materials industry produce cement, glass and articles of glassware, pottery building, precast, var. The main business are cements  Bicaz, Brasov, Fieni, Azuga, Turda . Glass is produced and processed in Bucharest, Medias, Târnăveni, Dorohoi, Turda, Avrig and Calarasi .

Wood processing industry has considerable forest resources. The wood processing mills are producing particle board, fiberboard, veneer, plywood, furniture. The most important units are in mountain and foothill areas in Suceava, Bistrita, Focsani, Pitesti forthe Miami, Arad, Targu Mures, Reghin, Satu Mare, Bucharest, Braila and Constanta.

Light and food industries have tradition in Romania, since there are significant domestic raw materials basis. Highlights are the cotton, wool processing industry, apparel and knitwear in Bucharest, Botosani, sugar industry, oils, wines and bakery.

The decision of the World Trade Organization oversaw the steady decline in rates since 1995, when it was signed in Marrakech Textile and Clothing Agreement, meaning that all WTO members should open their doors to unlimited imports from Asia. Especially from China, which is the main beneficiary of these economic measures. For Romania, this measure was a double blow: first, the internal market for goods already suffocated with Chinese entrance and it will be almost impossible recaptured after removal of imports quotas; secondly, Romanian exports to the European Union was the traditional market, with a share of 85% of textile exports, then, it will be increasingly difficult to maintain this market.

Number of employees in the textile industry was 360,000 in 2007, and dropped to 263,000 by August 2009, when the industry was hit hard by the financial crisis.

So, this was a short analyse of Romania economy system and their deficits.

Andrei Radu

[artigo de opinião produzido no âmbito da unidade curricular “Economia Portuguesa e Europeia” do 3º ano do curso de Economia (1ºciclo) da EGG/UMinho]