Macroeconomic and Sectorial Results in 2005 and 2006

Chapter 3
AND 2006
3.1. Evoluto!" o# $ro"" Do%e"t& 'ro(u&t a!( 'r!&pal A))re)ate"
$D' %o"t "*!thet&all* re#le&t" the e&o!o%& a&tvte" re"ult"+ their
dynamic and structure reflecting on the one hand the economic trend and on
the other hand the final consequences of the restructuring and reconversion
process on national economy level.
Romania’s Gross Domestic Product was of 287.2 illion R!" in 2##$%
indicating a growth in real terms of &.'( compared to 2##&.
)f we compare growth level in Romania’s GDP to that in certain *uropean
+nion countries results that% e,cepting -ithuania% where GDP raised with 8.8(
.in 2##$ compared to 2##&/% 01ech Repulic% with a growth of 2( in the same
period and 3ungary% that had a similar rhythm with our country’s% the rest of the
countries registered GDP growths lower than Romania.
3olland registers a growth of only #.4(% 5elgium '.&(% Germany #.4(%
)taly registers 1ero growth% 6inland 2.'% +nited 7ingdom of Great 5ritain and
"orth )reland '.8(% 8lovenia 9.4(% Denmar: 9.&( and for the entire *uropean
+nion .those 2$ countries/% the medium growth inde, for GDP was of '.2(.
Ta,le 3.1
$ro-th Rh*th% ! $D' ! Ro%a!a a!( Several Cou!tre" -th!
E.U. 2005.200/ 012

R!;<")< &.'
*.+. .2$/ '.2
5elgium '.&
01ech Repulic 2.#
Denmar: 9.&
6inland 2.'
Germany #.4
)taly #.#
-ithuania 8.8
3olland #.4
Poland 9.2
+nited 7ingdom '.8
8lovenia 9.4
3ungary &.'
=he real dynamic of GDP was reduced at less than a half compared to
the level in the previous year. =he moderated evolution was generated y the
Macroeconomic and Sectorial Results in 2005 and 2006
reduced speed of growth in what regards the domestic request and the
worsening of the negative contriution of the net e,ports.
> State &o!"ol(ate( ,u()et (e#&t. 8imilarly to the previous year%
reducing the udget deficit contriuted to temper inflation in 2##$ and limited at
the same time the deterioration of the current account deficit. "evertheless%
difficult aspects were also represented this year y the non?homogeneous
e,ecution of the udget e,penses .the entire deficit was practically accumulated
in the last month of the year/% as well as the insufficient weight of udgetary
incomes and e,penses in GDP .around 9#(% insufficient level according to
*uropean +nion standards/.
> E3ter!al a&&ou!t". *,ports rhythm of growth .'7.$(/ continued to e
significantly outrun y that of imports .29.4(/. =his happened ecause of the
following reasons@
? the effect of the nominal appreciation of leu compared to euroA
? growth of real salaries in a more rapid rhythm compared to wor:
productivity .within industry/A
? harsh competitiveness of <sian countries% especially as a result of the
lierali1ation of the international trade with te,tile productsA
? slow economic activity in euro area% especially in )taly and Germany% the
most important sales outlet for Romanian products.
+nder these conditions% the current account contriution in GDP was of
8.7(% compared to 8.&( registered in 2##&.
> Gross inde, of the industrial production registered a growth with two
percents in 2##$ compared to the previous yearA in the processing industry%
gross inde, was of '#2.$(.
4 La,or pro(u&tvt* ! industry was with $.2( higher in 2##$
compared to 2##&.
4 Total tur!over for companies with preponderant industrial activities
registered for 2##$% in real terms% registered a growth of 9.$( compared to the
previous year.
4 'r!&pal re"our&e" #or pr%ar* e!er)*% in 2##$% summari1ed
&'7$9.8 thousand tones oil equivalent
% out of which 2&789.2 thousand tones oil
equivalent from domestic production.
> =he value of the &o!"tru&to! a&tvte" in 2##$ increased with 4.8(
compared to 2##&A in Decemer 2##$% the volume of activities in construction
field increased with '8.$( compared to the corresponding month of the
previous year.
> )n 2##$% the turnover volume of the companies with preponderant
activities in retal tra(e #el( .e,cepting vehicle and motorcycle trade/ was
situated with '7.2( over the level registered in 2##&% ig increases eing
otained oth for the food product sales% drin:s and toacco .B'4.2(/% and for
non?food product sales .B'2.2(/.
Conventional fuel with calorific power of 10.000 kcal/kg.
Macroeconomic and Sectorial Results in 2005 and 2006
> =he turnover volume for companies with principal activity in (re&t
tra(e a!( retal tra(e #el(+ %a!te!a!&e a! repar!) veh&le" a!(
%otor&*&le"+ retal tra(e #or veh&le #uel registered in 2##$ was igger with
24.4( compared to 2##&% sustained oth y the growth of turnover volume from
vehicle trade and maintenance .B&'.$(/% and otained from direct trade of fuel
for vehicles .B'4.2(/.
> !ut of the activity of mar:et "erv&e" &arre( out #or the populato!
in 2##$ resulted a turnover with '8.2( higher compared to 2##&.
> <ccording to data provided y the "ational <gency for -aor 6orce
!ccupation% the numer of u!e%plo*e( people re)"tere( at the end of
Decemer 2##$ was $29.# thousand persons. 0ompared to Decemer 2##&%
the numer of unemployed people registered at the agencies for laor force
occupation was reduced with 9&.4 thousand persons. !ut of the total numer of
the unemployed persons registered% women represented &'.4(.
U!e%plo*%e!t rate registered in Decemer 2##$ was of $.4( reported
to the total active population .2.9( in Decemer 2##&/. +nemployment rate for
women was of $.9( .$.2( in Decemer 2##&/% and for men was of 2.$( .7.#(
in Decemer 2##&/.
3igh unemployment rates are registered in the following counties@
)alomiCa .'2.9(/% Daslui .'#.9(/% ;ehedinCi .4.2(/% 3unedoara .4.&(/% GorE
.4.2(/% 0FlFraGi .4.'(/% =eleorman .4.#(/% 3arghita .8.4(/ and 0ovasna
.8.8(/. -owest unemployment rates are registered in the following counties@
)lfov and =imiG .2.9( each/% 5ihor .2.7(/% 8atu ;are .9.$(/% as well as in
5ucharest .2.2(/.
3.2. E&o!o%& 5ear 2006
During 2##2 the volume of Gross Domestic Product was of 9&2.& illion
lei at current prices. GDPH person was of '$.82&%2 lei. GDP growth was of 7.7(
compared to 2##$% remar:ale within the *uropean conte,t@
Ta,le 3.2
$D' $ro-th 2006.2005 Ro%a!a a!( Several EU Cou!tre" 012

R!;<")< 7.7
*+ .2$/ 2.4
<ustria 9.'
5elgium 9.'
Denmar: 9.2
6inland &.&
+nited 7ingdom 2.7
Germany 2.7
)taly '.4
-ithuania 7.$
Macroeconomic and Sectorial Results in 2005 and 2006
3olland 2.4
+nited 7ingdom 2.8
8pain 9.4
8weden &.&
3ungary 9.4
0ompared to 2##$% constructions had the highest dynamic .''4.&(/% and
the agriculture the lowest .'#9.9(/.
)n GDP structure in 2##$% the highest contriution elongs to services
.&4.2(/% industry with 29.4(% and agriculture 8.'(.
Se&toral Evoluto!" ! 2006.
> During 2##2% compared to 2##$% !(u"tral pro(u&to! was with 7.'(
higher% growth sustained y all three industrial sectors@ processing industry
.B7.8(/% electrical and thermic energy% gases and water .B&.&(/ and e,traction
industry .B2.&(/.
=he highest growths were registered within the most important ranches
of the processing industry@ furniture and other unclassified industrial activities in
other fields .B2'.2(/% road transportation means .B2'.2(/% transportation
means non?included under road transportation means .B'2.9(/% food and
drin:s .B'$.4(/% metallic constructions and metallic products .B'$.8(/%
chemical sustances and products .B'&.#(/% production of construction
materials and other non?metallic mineral products .B''.8(/% machines and
electric devices .B''.2(/.
)n what regards the most important industrial groups% the highest growths
were registered for long term use goods .B29.$(/% capital goods industry .B'#.
2(/ and current use goods industry .B8.'(/.
4 I! 2006+ &o%pare( to 2005+ tur!over )ro-th #or total !(u"tr* -a"
o# 6.11+ to which a special contriution had capital goods industry .B'2.2(/%
long term use goods industry .B4.'(/% intermediary goods industry .B2.2(/ and
energetic industry .B&.2(/.
4 6or7 pro(u&tvt* ! !(u"tr* re)"tere( a )ro-th -th 10.61 !
2006 &o%pare( to 2005+ growth influenced y productivity dynamic in all
activity fields@ e,traction industry .B2$.2(/% processing industry .B'#.2(/ and
electric and thermic energy% gases and water .B$.'(/.
4 'r!&pal re"our&e" #or pr%ar* !(u"tr*+ in 2##2% summari1ed
&'4$'.9 thousand tones oil equivalent .out of which 2&$4'.2 thousand tones oil
equivalent from domestic production/% in progress with '.'( compared to 2##$%
following import increase with 9.' (. Primary energy production was reduced
with #.9(.
4 Ele&tr& e!er)* pro(u&to! "u%%ar8e( in 2##2% 222#7.8 thousand
:wh% in progress with &.7( compared to 2##$. =he iggest part of production
continues to e otained in thermic plants .2'.$(/% followed y hydro?plants
Macroeconomic and Sectorial Results in 2005 and 2006
Ele&tr& e!er)* #!al &o!"u%e in 2##2 was of $#9&8.& million :wh% with
2.7( higher than in 2##$A pulic lighting and population consume registered
growths with 2.2(% respectively $.9(.
4 I! 2006 the value o# &o!"tru&to! a&tvte" re)"tere( a )ro-th
-th 19.31 &o%pare( to 2005. =a:ing into consideration structural elements%
the most important growths were registered for current maintenance and
reparations activities .B22.7(/ and for new construction activities .B'8.#(/.
6rom the point of view of construction types% the highest growth was registered
to engineering construction .B2'.8(/.
4 I! 2006 &o%pare( to 2005+ tur!over volu%e #or &o%pa!e" -th
pr!&pal a&tvt* -th! retal tra(e #el( 0e3&ept!) veh&le a!(
%otor&*&le" tra(e2 re)"tere( a )ro-th -th 2/.01. 3igh growths were
otained especially y on?line trading products% a system preferred y the
population segment with high incomes and with little spare time .B$2.8(/.
=urnover volume of companies with principal activity within (re&t tra(e
a!( retal tra(e #el(+ %a!te!a!&e a!( reparato! o# veh&le" a!(
%otor&*&le"+ #uel retal tra(e #or veh&le" registered in 2##2 compared to
2##$% a growth of '8.#(.
)n what regards %ar7et "erv&e" &arre( out #or populato!% turnover
volume inde, in 2##2% compared to 2##$ registered a growth with '9.2(.
> 0ompared to 2##$% turnover otained y companies with principal
activity within (re&t a!( retal tra(e #el(+ %a!te!a!&e a!( reparato! o#
veh&le" a!( %otor&*&le"+ retal tra(e -th #uel #or veh&le"+ was higher
with '8.#( ecause of the registered growths oth for vehicle trade .B2#.2(/%
and retail trade for vehicle fuel .B'&.7(/.
> <ctivity of %ar7et "erv&e" &arre( out ,* populato! registered a
turnover a growth in 2##2% with '9.2( compared to the level registered in 2##$.
)ncreases of turnover were registered in the following activities@ gamling and
other entertainment activities .B'&.9(/% hotels and restaurants .B'2.#(/ and
hair styling and other eauty activities .B$.4(/.
4 E3ter!al tra(e was very dynamic. 8o% :O; e3port" a&&o%pl"he( !
2006 -ere o# 25<50.5 ,llo! euro"+ ther value ,e!) -th 16.21 h)her
tha! 2005.
)n e,port structure% five out of those twenty two sections of goods in
0omined *,port -ist own together 7'.7( out of total e,ports as follows@
machines and mechanic devicesA electrical machines% devices and equipmentA
devices for recording or reproducing sound and image .2#.9( out of total
e,ports/% te,tile materials .'2.'(/% commune metals .'$.#(/% mineral productsI
crude oil% oil products% ores% coal% cement% salt% etc..? .'#.$(/% transportation
means and materials .4.8(/.
Macroeconomic and Sectorial Results in 2005 and 2006
Dalue of e,ports to *uropean +nion countries .*+ 2$/ in 2##2% compared
to 2##$% increased with '2.9(. =he weight of e,ports to *uropean +nion
countries in total e,ports was of 27.7(.
4 CI: %port" ! 2006 repre"e!te( /0=/5.< %llo! euro" 03=609.2
%llo! euro" ! :O; pr&e"2+ ther value ,e!) -th 25.11 h)her tha!
)n import structure% si, out of the twenty two sections of goods in the
0omined *,port -ist represent together 72.$( out of the total of imports% as
follows@ machines and mechanic devicesA electric machines% devices and
equipmentA devices for recording or reproducing sound and image .2&.9( out of
the total of imports/% mineral products I crude oil% oil products% ores% coal%
cement% salt% etc.I .'&.8(/% transportation means and materials .''.2(/%
commune metals and articles otained out of them% .4%4(/% te,tile materials and
articles otained out of them .8.9(/% products of chemical industry and other
affiliated industries .7.2(/.
The value o# %port" from *uropean +nion countries .*+ 2$/ in 2##2
compared to 2##$% increased with 2$.4(. =he weight of imports from *uropean
+nion countries was in total imports of 22.2(.
=rade deficit in 2##2 was of '&84$.9 million euros in 6!5H0)6 prices .?
'#9'9.& million euros in 2##$/ and of '7$8.7 million euros in 6!5H6!5 prices .?
78#2.9 million euros in 2##$/.
> )n tourism sector% compared to 2##$% arrval" in touristic structures
with accommodation function in 2##2 were higher y 7.'(.
A&&o%%o(ato!" over !)ht in touristic structures with accommodation
function increased in 2##2 with 9.&( compared to 2##$.
I!(e3 o# pla! u"a)e o# a&&o%%o(ato! pla&e" was of 99.2( in 2##2
for total structures for touristic accommodation% compared to 99.&( in 2##$.
=he highest value was registered y the inde, for plain usage of
accommodation places on cruising ships .27.8(/% followed y the inde,
affiliated to hotels .&'.#(/. 6or touristic areas% the highest inde, was that
affiliated to athing resorts.
The arrval" o# #ore)! v"tor" ! Ro%a!a ! 2006 !&rea"e( -th
3./1 &o%pare( to 2005. =he maEority of foreign visitors are from countries
situated in *urope .4&.2(/. &2.&( from total visits of foreign visitors’ arrivals in
Romania were registered from *uropean +nion states.
Departure" o# Ro%a!a! v"tor" a,roa( increased with 2&.7(
compared to 2##$. Road transportation means were most frequently used y
Romanian visitors for traveling aroad .89.9( out of the total numer of
4 $ro"" %e(u% !o%!al "alar* per economy in Decemer 2##2 was
of '&8' lei .R!"/% and the ta:e?home pay of '#44 lei .R!"/% increasing from
the previous month with 22.'( respectively 2'.#(.
0ompared to the previous month% the report ,et-ee! the !(e3 o# the
!et %e(u% !o%!al "alar* a!( the !(e3 o# &o!"u%pto! pr&e" in
Macroeconomic and Sectorial Results in 2005 and 2006
Decemer 2##2 was of '2#.'(A '29.2( compared to the corresponding month
of 2##$ and ''2.2( compared to !ctoer '44#.
4 La,or %ar7et. The !u%,er o# e%plo*ee" .from units with &
employees and more/ was in Decemer 2##2 of &$7$.# thousand persons% with
28.& thousand persons lower than in "ovemer 2##2.
4 U!e%plo*%e!t. <ccording to data provided y "ational <gency for
-aor 6orce !ccupation% !u%,er o# u!e%plo*e( people re)"tere( at the
end of Decemer 2##2 was of &2#.$ thousand persons. 0ompared to
Decemer 2##$% numer of unemployed people registered at the agencies for
laor force occupation was lower with 22.$ thousand people. !ut of the total
numer of registered unemployed people% &'.2( were women.
Rate o# u!e%plo*%e!t re)"tere( in Decemer 2##2 was of $.2( from
the total civil active population. +nemployment rate for women was with '.'
percentage points lower than rate for men .&.2( compared to $.7(/.
3igh rates of unemployment were registered within the following
counties@ Daslui .''.2(/% ;ehedinCi .4.'(/% GorE .8.7/% )alomiCa .8.7(/%
=eleorman .8.2(/. -owest unemployment rates were registered within the
following counties@ )lfov .2.#(/% =imiG .2.'(/% 5ihor .2.7(/ and 5ucharest
4 Co%pare( to De&e%,er 2005+ !&rea"e o# pr&e" was of &.4(. =o
this% food products with B#.& percentage points% non?food products% with B9.2
percentage points and services with #.4 percentage points contriution
Correlate( !(e3 -th &o!"u%pto! pr&e" in Decemer 2##2
compared to Decemer 2##$ reveals the same dynamic at total level as in the
case of national inde,. =he evolution of prices classified according to products
destination and services specific for the correlated inde, indicates the highest
increases at alcoholic drin:s and toacco .B22.$(/% followed y private houses
maintenance% water% electric energy% gases and other types of fuel .B'&.'(/%
and the lowest to communication services .?$.#(/% health .#.9(/% as well as at
food and non?alcoholic drin:s .'.#(/.
<ccording to this structure e,penses for education% resting%
entertainment% culture% hotels% cafJs% ars% different goods and services
represent together around '#( from the total consumption monetary e,penses
of population.
0onsidering the correlated inde,% in Decemer 2##2% compared to
Decemer 2##$% we should underline that out of the 27 ;emer 8tates of
*uropean +nion% the growth level of Romania of &.4( is surpassed y -atvia%
.2.8(/% 3ungary .2.2(/% 5ulgaria .2.$(/ and *stonia .$.'(/.
3.3. :ore)! Captal D*!a%&" ! E&o!o%*
=he reduced volume of the domestic capital imposed as a unique
solution in order to encourage and strengthen the economic development and
Macroeconomic and Sectorial Results in 2005 and 2006
to attract foreign investments. Political developments% a certain state of
uncertainty and insecurity for the future generated a delay in placements of
foreign capital in Romania% compared to the rest of the 0entral and *astern
*uropean countries in similar conditions as regards the economic system
Domestic legislation and ta,ation policy postponed the infusion of foreign
capital in Romania for a period after '44#. )rrespectively of the capital origin% the
accomplishments are added to Romanian national estate. =ale 9.9 presents
information referring to registration of trade companies with foreign capital and
the suscried share capital value.
Ta,le 3.3
Re)"trato! o# Tra(e Co%pa!e" -th :ore)! 'art&pato! ! Su,"&r,e(
Share Captal ! 1991>2006
Registrations of
Value of the total subscribed share capital expressed in:
National currency Foreign currency
number structure
lei (RON)
TT!" 1#194# 100.0 40654485.0 100.0 19858915.2 100.0 15#0#061.9 100.0
1991 5499 4.2 268165.5 0.8 1058260.8 5.# 81#949.1 5.#
1992 11765 8.9 6515#.0 0.2 57#271.2 2.9 440925.0 2.9
199# 1058# 8.0 9279#.2 0.2 417844.8 2.1 #21#80.5 2.1
1994 1105# 8.4 2#05#5.9 0.6 88167#.# 4.4 678128.9 4.4
1995 #400 2.6 6789#.9 0.2 2#7717.0 1.2 1828#7.# 1.2
1996 #6#0 2.7 229256.# 0.6 57#594.2 2.9 44117#.4 2.9
1997 5251 4.0 2#2229.8 0.8 #59912.8 1.8 276822.8 1.8
1998 8801 6.7 728812.4 1.8 755475.# #.8 581085.2 #.8
1999 7#8# 5.6 121484#.7 #.0 944#65.# 4.8 726#47.7 4.8
2000 8567 6.5 1870247.9 4.6 8#9148.8 4.2 845417.8 4.2
2001 7175 5.4 4820820.8 11.9 1540810.8 7.8 1185096.9 7.8
2002 7518 5.7 #541822.9 8.7 1078746.2 5.4 829705.2 5.4
200# 6609 5.0 4441402.8 10.9 1288885.0 6.5 991##1.1 6.5
2004 10167 7.7 9040677.5 22.2 #0#2218.4 15.# 2##2195.9 15.2
2005 11719 8.9 717#157.1 17.6 #149681.6 15.9 2422541.4 15.8
2006 1282# 9.7 8846972.# 16.# #127#14.7 15.7 24#414#.7 15.9
"ote@ 0olumn ' represents numer of registrations in the respective period. Data referring to the suscried share
capital include the capital suscriptions at registration of trade companies in the referred period to which capital
increases added and the suscried share capital of the defunct trade companies in =rade Register was reduced during
the referred period.
During the period '44'?2##2% '9'.4&9 trade companies with foreign
capital were registered. 6rom numeric point of view% top years were 2##$ .8.4(
out of total/ and 2##2 with 4.7(% respectively '442 with 8.4(. 0onsidering the
suscried capital% 2##&% 2##$ and 2##2 had the highest contriutions. '442%
that presents a significant weight from numerical point of view% has an e,tremely
Macroeconomic and Sectorial Results in 2005 and 2006
reduced contriution .#.2(/ from share capital point of view. =his situation was
generated y the wish of authorities to encourage foreign investments so that%
through specific legislation% a minimum money limit was estalished in order to
create a company with foreign participation. )t is e,pected that after Romania’s
integration in *+ on the '
of Kanuary 2##7% our country should ecome a more
tempting destination for foreign investors.
)n 2##2 the highest weight in new companies registered was represented
y )taly with over 2'(% followed y 3ungary at distance .4.'(/ and Germany
.8.'(/. 6rom the point of suscried capital 8pain detaches with appro,imately
&$( from currency capital% followed y 3olland with over '#(.
)n 2##2% direct foreign investments .)8D/ increased compared to 2##$
with &'.2(% this capital structure was of@ 72.2( ? capital participations and
29.8( other capitals. Direct foreign investment of Romanian residents aroad%
at the end of 2##2% was of 2'#.4 mil *+R!.
!ut of the total registrations with foreign participation% 5ucharest
detaches with almost 9$( numerically and around 78( from capital in
currencyA counties of =imiG% 5ihor% 0luE and <rad follow at distance.
Macroeconomic and Sectorial Results in 2005 and 2006
• < moderate growth .de &.'(/ of Gross Domestic Product in 2##$
compared to 2##& and strong .B7.7(/ in 2##2 compared to 2##$
• =he significant growth of services contriution in order to accomplish
GDP% a fact that rings the national economic structure closer to the
*uropean model.
• 0arrying on the process of increasing direct foreign investments% stronger
than in previous years .B&'.2( in 2##2 compared to 2##$/% a positive
aspect% ta:ing into account the perspective to strengthen a lasting
development and Romanian economy integration in *uropean +nion
• =he significant presence of the Romanian residents in investment activity
of investing aroad .2'#.4 mil *+R! in 2##2/
• !ut of the total numer of registrations of trade companies with foreign
capital .'44'?2##2@ almost '92.###/ top year is 2##2 with almost '#( from
total% followed y 2##$ with around 4(.
• < relatively slow rhythm of industrial production development% in which the
e,traction ranch in course of restructuring and the processing industry is
still strongly dependent of the declining production.
• =he increase of internal request% douled y a limited capacity of
domestic industry% generated a igger and igger volume of imports% fact
that determined the worsening of trade alance deficit .around '# illion
euros in 2##$/
• Reducing inflation to a rate e,pressed y a small numer represented y
a single figure .less than '# percents/ in 2##$ and at a significantly
reduced level in 2##2. .B&.4(/