Romania

Elizabeth Cotora

Overall Score: 66.6 World Rank: #57

Romania Quick Facts


  • Population:


-21.3 million


  • GDP (PPP):


-$285.1 billion

-3.5% growth

-0.3% 5-year compound annual growth

-$13,396 per capita


  • Unemployment:


-7.4%


  • Inflation (CPI):


-4.0%


  • FDI Inflow:


-$3.6 billion

Legal System

Romania has a constitutional republic, which means the head and other officials are representatives of the people. They must govern to existing constitution. Romania has an elected parliament, the house of representatives and the senate. Citizens vote on a new parliament every 4 years. They also have an elected president and he chooses the prime minister.

Romania is part of the European Union, which is elected every five years.

Competitive Markets

There aren't many competitive markets in Romania. They're not going through a great economy so most markets don't want to compete with them. Although, there are still some good companies out there. For example, Dacia car industry, AllView cellphones, and Petrom.

Limits on Government Regulation

Government regulations limiting the budgetary deficit and public debt are new in the Romanian legal system. This started in 2010 and it was more of an attempt to restore finances. Most of these rules were included in the legislation system. Since 2009, Romania has granted loans in order to prevent the negative effects of the global financial

crisis. Every government obviously has limits on certain things.

An Efficient Capital Market

The Romanian capital market has grown in the last decade. There was a fluctuation in money, known as "leu". 1 Leu equals .24 American cents. For most of the stocks, the "random walk hypothesis" can't be rejected. Because of this, there aren't enough reasons to reject the Efficient Market Hypothesis and actually go against it.

Monetary Stability

Money does not have much worth in Romania. They don't have a strong economy so money is considered weak there. They have been like this since anyone can remember and I feel like it will always stay this way. They do have stability but it's nowhere near where excellent, sadly.

Low Tax Rates

In Romania, the Personal Income Tax Rate is a tax taken from people and is established on different sources of income like labor, interest, etc. The Personal Income Tax Rate in Romania is 56.50%. It averaged about 43.70% from 1995 until 2014, reaching an all time high of 56.50% in 2013 and a record low of 40 percent in 1996.

http://www.tradingeconomics.com/romania/personal-income-tax-rate

Free Trade

Free Trade Zones (FTZ's) are made by the National Agency of Free Trade Zones. Romania has six FTZs, all located in ports but one - the Arad-Curtici FTZ. Because of its location, this could become one of the most attractive for investors. Romania's largest trading partner was Germany and for many years, it still was.

Romania's main exports to Germany were insulated wire, and cars parts.

Economic Growth in Romania - Using people for the core
The video talks about Romania's economy and what exactly makes an economy rise/fall. To be more specific, I think that if more Romanians realize their potential and skills, Romania's economy will become stronger.

Famous Brands

Interesting Facts

Romania is the ninth largest wine producer in the world and in 1889 the city of Timisoara became the first in Europe to have electric street lighting. Also, it's Europe’s richest country in gold resources!