2019

ROMANIA - AUSTRIA
TRADE REPORT (2000-2017)

External Trade and Customs Union in EU

Ples Traian
1/20/2019
Introduction:

Romania, as part of the European Union single market, is a fast developing, high income
mixed economy with a very high Human Development Index and a skilled labour force, the
10th largest in the European Union by total nominal GDP and the 8th largest based on
purchasing power parity.

The Romanian economy is the 41st-largest economy in the world (out of 188 countries
measured by IMF) with $435,454 million annual output, and ranks 41st in the world in terms
of GDP per capita measured by purchasing power parity. Romanian economy is expected to
grow by +3.8% in 2019.Based on current economic growth it's expected to hit 1 trillion of
USD PPP before 2035.

Romania continues to be one of the leading nations in Central and Eastern Europe for
attracting foreign direct investment: the inward FDI in the country with a cumulative FDI
totaling more than $170 billion since 1989. Romania is the largest electronics producer in
Central and Eastern Europe. Electronics manufacturing and research are among the main
drivers of innovation and economic growth in the country. In the past 20 years Romania has
also grown into a major center for mobile technology, information security, and related
hardware research Dacia automobiles.

The country is a regional leader in multiple fields, such as IT and motor vehicle production.
Bucharest, the capital city, is one of the largest financial and industrial centres in Eastern
Europe. According to Eurostat Romania posted the biggest economic growth in EU in 2016
by more than 6% increase of GDP.

The top 10 exports of Romania are: vehicles, machinery, chemical goods, electronic products,
electrical equipment, pharmaceuticals, transport equipment, basic metals, food products, and rubber
and plastics. Imports of goods and services increased 9.3%, while exports grew 7.6% in 2016, as
compared to 2015. Exports of goods and services are expected to grow by 5.6% in 2017, while
imports are seen increasing by 8.5%, according to the latest CNP (National Prognosis Commission)
projections .
 1,600,000,000

EXPORTS RO-AT

1,400,000,000 COMMODITIES AND

TRANSACTIONS NOT CLASSIFIED
ELSEWHERE IN ...
MISCELLANEOUS MANUFACTURED
1,200,000,000 ARTICLES

MACHINERY AND TRANSPORT

EQUIPMENT

1,000,000,000
MANUFACTURED GOODS
CLASSIFIED CHIEFLY BY MATERIAL

CHEMICALS AND RELATED

800,000,000 PRODUCTS, N.E.S.

ANIMAL AND VEGETABLE OILS,

FATS AND WAXES
600,000,000
MINERAL FUELS, LUBRICANTS AND
RELATED MATERIALS

400,000,000 CRUDE MATERIALS, INEDIBLE,

EXCEPT FUELS

BEVERAGES AND TOBACCO

200,000,000

FOOD AND LIVE ANIMALS

Industry in Romania, which generated 33.6% of the local gross domestic product (GDP) in the first
half of the year 2018, recorded a 4.3% increase in its activity volume and generated 1 percentage
point of the 4% economic growth. According to the National Statistics Institute (INS) Romania’s
economy increased by 4% in the first half of 2018 compared to the same period of 2017.
On 1 January 2007 Romania entered the EU. This led to some immediate international trade
liberalization. Romania is part of the European single market which represents more than 508 million
consumers. Several domestic commercial policies are determined by agreements among European
Union members and by EU legislation. This is to be contrasted with enormous current account
deficits. Low interest rates guarantee availability of funds for investment and consumption. For
example, a boom in the real estate market started around 2000 and has not subsided yet. At the
same time annual inflation in the economy is variable and during the mid-2000s (2003–2008) has
seen a low of 2.3% and high of 7.8%.

TOTAL EXPORTS ROMANIA-AUSTRIA (2000-2017)

1.6E+09
1.4E+09
1.2E+09
1E+09
800000000
600000000
400000000
200000000
0

Austria is the 31st largest export economy in the world. In 2016, Austria exported $146B and
imported $162B, resulting in a negative trade balance of $16.5B. In 2016 the GDP of Austria was
$390B and its GDP per capita was $50.6k.

TOTAL IMPORTS ROMANIA-AUSTRIA (2000-2017)

3,000,000,000
2,500,000,000
2,000,000,000
1,500,000,000
1,000,000,000
500,000,000
TOTAL IMPORT RO-AT
0
Jan.-Dec. 2003

Jan.-Dec. 2006
Jan.-Dec. 2000
Jan.-Dec. 2001
Jan.-Dec. 2002

Jan.-Dec. 2004
Jan.-Dec. 2005

Jan.-Dec. 2007
Jan.-Dec. 2008
Jan.-Dec. 2009
Jan.-Dec. 2010
Jan.-Dec. 2011
Jan.-Dec. 2012
Jan.-Dec. 2013
Jan.-Dec. 2014
Jan.-Dec. 2015
Jan.-Dec. 2016
Jan.-Dec. 2017
 4,500,000,000
4,000,000,000
3,500,000,000
3,000,000,000
Axis Title

2,500,000,000
2,000,000,000
1,500,000,000
TOTAL IMPORT RO-AT
1,000,000,000
Total exporturi RO-AT
500,000,000
0
Jan.-Dec. 2008

Jan.-Dec. 2017
Jan.-Dec. 2000
Jan.-Dec. 2001
Jan.-Dec. 2002
Jan.-Dec. 2003
Jan.-Dec. 2004
Jan.-Dec. 2005
Jan.-Dec. 2006
Jan.-Dec. 2007

Jan.-Dec. 2009
Jan.-Dec. 2010
Jan.-Dec. 2011
Jan.-Dec. 2012
Jan.-Dec. 2013
Jan.-Dec. 2014
Jan.-Dec. 2015
Jan.-Dec. 2016
IMPORTS-EXPORTS

The top exports of Austria are Packaged Medicaments ($6.2B), Vehicle Parts ($4.98B), Cars ($3.99B),
Human or Animal Blood ($3.25B) and Combustion Engines ($2.74B), using the 1992 revision of the HS
(Harmonized System) classification. Its top imports are Cars ($10B), Broadcasting Equipment
($5.01B), Vehicle Parts ($4.36B), Refined Petroleum ($3.49B) and Hormones ($3.39B).
 3,000,000,000
IMPORTS RO-AT
COMMODITIES AND
TRANSACTIONS NOT CLASSIFIED
2,500,000,000 ELSEWHERE IN ...
MISCELLANEOUS
MANUFACTURED ARTICLES
2,000,000,000

MACHINERY AND TRANSPORT

EQUIPMENT
1,500,000,000

MANUFACTURED GOODS
1,000,000,000 CLASSIFIED CHIEFLY BY MATERIAL

CHEMICALS AND RELATED

500,000,000 PRODUCTS, N.E.S.

ANIMAL AND VEGETABLE OILS,

0 FATS AND WAXES

MINERAL FUELS, LUBRICANTS

AND RELATED MATERIALS

The top export destinations of Austria are Germany ($39.9B), the United States ($10.9B), Italy
($9.1B), Switzerland ($7.92B) and France ($5.56B). The top import origins are Germany ($68.1B), Italy
($10.1B), Switzerland ($9.1B), the Czech Republic ($7.35B) and the Netherlands ($6.8B).

Austria borders Switzerland, the Czech Republic, Germany, Hungary, Italy, Slovakia and Slovenia.

Below is a list showcasing 15 of Austria’s top trading partners, countries that imported the most
Austrian shipments by dollar value during 2017. Also shown is each import country’s percentage of
total Austrian exports.

Germany: US$48.7 billion (29.0% of total Austrian exports)

United States: $10.3 billion (6.1%)
Italy: $10.2 billion (6.1%)
Switzerland: $8.5 billion (5.1%)
Slovakia: $8.1 billion (4.8%)
France: $7.9 billion (4.7%)
Czech Republic: $5.9 billion (3.5%)
Hungary: $5.5 billion (3.3%)
Poland: $5.2 billion (3.1%)
China: $4.4 billion (2.6%)
United Kingdom: $4.4 billion (2.6%)
Slovenia: $3.2 billion (1.9%)
Netherlands: $2.9 billion (1.7%)
Romania: $2.7 billion (1.6%)
Spain: $2.7 billion (1.6%)
Over three-quarters (77.6%) of Austrian exports in 2017 were delivered to the above 15 trade
partners.
Austria incurred the highest trade surpluses with the following countries:
United States: US$6 billion (country-specific trade surplus in 2017)

France: $3.8 billion

Slovakia: $3.3 billion
Russia: $1.9 billion
United Kingdom: $1.7 billion
Poland: $1.4 billion
Australia: $1.2 billion
Romania: $966.8 million
Mexico: $961.3 million
Canada: $902.4 million

Ten Austrian corporations rank among Forbes Global 2000. Below is a sample of the major Austrian
companies that Forbes included:
Andritz (other industrial equipment)

OMV Group (oil, gas)

STRABAG (construction services)
Uniqa (diversified insurance)
Voestalpine (iron, steel)
Many Austrian companies contribute to the development of the industry in Romania and the
creation of valuable jobs.
 over1,000 active Austrian investors
 more than 6,100 companies with Austrian equity
 around 100,000 direct employees
OMV‘s involvement with Petrom marks a milestone in the Austrian-Romanian business relations. 
2004:
OMV acquires majority share of Petrom for € 1.5bn
 2004-10: OMV has invested € 6 bn in the modernization of existing facilites and structures
 Today Petrom is one of the most succesful companies in Romania and amongst the major
employers in the country (providing ~25,000 jobs)
Export is regarded as vital to Austrian economy. Main export commodities are machinery and
equipment, motor vehicles and parts, paper and paperboard, metal goods, chemicals, iron and steel;
textiles, foodstuff. Austria's top-ten export commodities make up two-third of the entire export
volume. Most exports go to other EC countries (mainly Germany), about 15% go overseas.
Top 10 Romanian Imports from Austria in 2017
 IMPORTS RO-AT (2000-
3,000,000,000

COMMODITIES AND TRANSACTIONS

NOT CLASSIFIED ELSEWHERE IN ...
2,500,000,000
MISCELLANEOUS MANUFACTURED
ARTICLES

2,000,000,000 MACHINERY AND TRANSPORT

EQUIPMENT

MANUFACTURED GOODS CLASSIFIED

CHIEFLY BY MATERIAL
1,500,000,000
CHEMICALS AND RELATED PRODUCTS,
N.E.S.

ANIMAL AND VEGETABLE OILS, FATS

1,000,000,000
AND WAXES

MINERAL FUELS, LUBRICANTS AND

RELATED MATERIALS
500,000,000
CRUDE MATERIALS, INEDIBLE, EXCEPT
FUELS

BEVERAGES AND TOBACCO

0

FOOD AND LIVE ANIMALS

Austria's exports to Romania amounted to $2.8 billion or 3.3% of its overall imports.

1. Electronic equipment: $478.9 million

2. Vehicles: $366.7 million

3. Machinery: $362.8 million

4. Pharmaceuticals: $170 million

5. Iron and steel: $150.3 million

6. Paper: $135.4 million

7. Plastics: $119 million

8. Iron or steel products: $91.1 million

9. Leather, animal gut articles: $74.2 million

10. Medical, technical equipment: $66.3 million

 Coverage ratio
80
70
60
50
40
Coverage ratio
30
20
10
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
As we can see the coverage ratio is experiencing a significant decline in years of crisis. It began in
2007 with a crisis in the subprime mortgage market in the United States, and developed into a full-
blown international banking crisis with the collapse of the investment bank Lehman Brothers on
September 15, 2008. Excessive risk-taking by banks such as Lehman Brothers helped to magnify the
financial impact globally. Massive bail-outs of financial institutions and other palliative monetary and
fiscal policies were employed to prevent a possible collapse of the world financial system. While the
collapse of large financial institutions was prevented by the bailout of banks by national
governments, stock markets still dropped worldwide. In many areas, the housing market also
suffered, resulting in evictions, foreclosures, and prolonged unemployment.