Small and Medium Enterprises

Chapter I: General overview of the economy

Romania is a country located at the crossroads of Central and Southeastern Europe, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea. Romania shares a border with Hungary and Serbia to the west, Ukraine and Moldova to the northeast and east, and Bulgaria to the south.

At 238,400 square kilometers Romania is the ninth largest country of the European Union by area, and has the seventh largest population of the European Union with over 19 million people. Its capital and largest city is Bucharest, the tenth largest city in the EU with about two million people.

With a GDP of around 250 billion EUR and a GDP per capita (PPP) of 14,031 EUR for the year 2011, Romania is an upper-middle income country economy and has been part of the European Union since 1 January 2007.

Romania reported a trade deficit equivalent to 714 Million EUR in March of 2012. Romania exports mostly machinery and transport equipment, raw materials, and miscellaneous manufactured articles like textiles and footwear. Romania imports machinery and transport equipment, raw materials, chemicals and fuels. More than 70% of exports and imports are with other European Union members with Italy, Germany and France being the most important.

Romania Exports

Romania exports were worth 4014 Million EUR in March of 2011. Romania exports mostly machinery and transport equipment, raw materials, and miscellaneous manufactured articles like textiles and footwear. Romania main exports partners are other European Union members with Germany, Italy and France being the most important. Others include Turkey.

Romania GDP

Romania Gross Domestic Product is worth 162 billion dollars or 0.26% of the world economy, according to the World Bank. Historically, from 1987 until 2010, Romania's average Gross Domestic Product was 67.68 billion dollars reaching an historical high of 200.10 billion dollars in December of 2008 and a record low of 25.10 billion dollars in December of 1992. Romania is an upper-middle income economy and has been part of the European Union since 2007. In recent years, domestic consumption and foreign direct investments have been stimulating Romania's GDP growth. Yet, corruption and red tape continue to be major hurdle for the future development. The main industries in Romania are: electric machinery and equipment, textiles and footwear, light machinery and auto assembly, software, mining, timber, construction materials, metallurgy, chemicals, food processing and petroleum refining.

Romania Imports

Romania imports were worth 4728 Million EUR in March of 2012. Romania imports machinery and transport equipment, raw materials, chemicals and fuels. Its main imports partners are other European Union members with Germany, Italy, Hungary and France being the most important. Others include Russia and Turkey.

Romania Industrial Production

Industrial Production in Romania increased 0.5 percent in March of 2012. Industrial production measures changes in output for the industrial sector of the economy which includes manufacturing, mining, and utilities. Industrial Production is an important indicator for economic forecasting because is highly sensitive to interest rates. Industrial Production is also used by economists and central bankers to measure inflation pressures, as high levels of industrial production can lead to sudden changes in prices.

Gross industrial production index of January 2012 as against the previous month registered a decrease per total by 0.3% due to the production decrease in mining and quarrying (-3.3%) and in electricity, gas, steam and air conditioning supply sector (-3.3%). In manufacturing production increased by 0.4%. In manufacturing production increased due to the following industrial branches: manufacture of tobacco products (+33.0%), manufacture of motor vehicles, trailers and semi-trailers (+31.9%), manufacture of basic pharmaceutical products and pharmaceutical preparations (+21.8%), tanning and dressing of leather; manufacture of travel and leather goods, harness and footwear; preparation and dyeing of furs (+18.9%) and manufacture of wearing apparel (+15.6%).