The Economic Activity of Romania
The economy of Romania has been dubbed as the “Tiger of the East” because of its high economic growth rate and rapid expansion; amongst the highest in the European Union. In 2008, its $264 billion GDP is the 11th biggest in EU and 8th largest based on purchasing power parity. Some analyst predicted that the Romanian economy will double in 2011 and may surpass Italy’s GDP per capita by 2020. Romania joined the European Union in January 2007. It plans to replace it current currency, the leu, with the Euro in 2010.
Romania’s main industries include iron, steel, nonferrous metals, food processing, chemicals, machinery and transportation equipment, electronics, and construction. Its major trading partners include Italy, Germany, Russia, Turkey, France, and the UK. The vehicle manufacturing and IT-related services recorded significant growth in recent years. Some of the fashion houses in the country include Agnes Toma, Steil and Steilman while Dacia Logan (by Renault), Ford, ARO and Daewoo Romania are car models manufactured in Romania. In terms of minerals diversity, the country ranks 10th in the world; about 60 different minerals are produced. Boron salts are the richest mineral produced making Romania’s reserves about 63% of the world’s total.
In 2007, there were about 7.7 million tourists that visited Romania making the tourism industry an important contributor to the economy. Bucharest, the capital city, is a major financial district and houses to various services industries – banking, insurance, and business services. Business Week magazine announced the Bucharest Stock Exchange (BSE) as the best performing stock market index in the world during the first 4 years of the 21st century.