COUNTRY PROFILE OF ROMANIA

APRIL 2020

Capital : Bucharest

Term for Citizen(s): Romanians

Major Cities :

Bucharest is the largest city in Romania, and is the capital, cultural,

industrial, and financial center of the country. Constanta is the oldest
continuously inhabited city in the country after being formed in 600 BC. It has
a population of 283,872 people which makes it the fifth-largest city in the
country by population. Cluj-Napoca, or
simply Cluj, is an ancient metropolis with Demographical Status:
a young soul, located right in the heart Population : 20,121,641
of Transylvania. 
Growth Rate : -0.29%
National Holidays :
Birth Rate : 9.27 Births/1000
Population
 New Year's Day. 01 January 2020.
 Epiphany. 06 January 2020. Death Rate : 11.8 Deaths/1000
 Orthodox Easter Monday. 20 April 2020. Population
 Labour Day. 01 May 2020.
Life Expentancy:
 Whit Monday. 01 June 2020.
 National Day. 01 December 2020.  Male = 71.4 years
 Christmas Day. 25 December 2020.
 Second Day of Christmas. 26 December 2020.

Independence :

Romania declared its independence from the Ottoman Empire after the 1877-1878
Russo-Turkish War, in which the Ottomans fought on the Russian side. In the
1878 Treaty of Berlin, Romania was officially recognized as an independent state
by the Great Powers. In return, Romania ceded the district Bessarabia to Russia
in exchange for access to the Black Sea ports and acquired Dobruja.[citation
needed] In 1881, the Romania's principality status was raised to that of
a kingdom and on 26 March that year, Prince Carol became King Carol I of Romania
Flag of Romania :

In 1834 the Ottoman government recognized

local flags for use
in Moldavia and Walachia, two principalities
that later joined to form Romania. Their
local flags were based on ancient heraldic
banners—blue with an ox head or Moldiva and
yellow with an eagle (Walachia). Walachia
also chose a naval ensign with horizontal
stripes of red, blue, and yellow, colours
later selected for the Romanian national
flag.
CHAPTER ONE

HISTORICAL BACKGROUND

Romania, country of southeastern Europe. The national capital is Bucharest.

Romania was occupied by Soviet troops in 1944 and became a satellite of the Union
of Soviet Socialist Republics (U.S.S.R.) in 1948. The country was under communist
rule from 1948 until 1989, when the regime of Romanian leader Nicolae
Ceaușescu was overthrown. Free elections were held in 1990. In 2004 the country
joined the North Atlantic Treaty Organization (NATO), and in 2007 it became a
member of the European Union (EU). The Romanian landscape is approximately one-
third mountainous and one-third forested, with the remainder made up of hills and
plains. The climate is temperate and marked by four distinct seasons. Romania
enjoys a considerable wealth of natural resources: fertile land for agriculture;
pastures for livestock; forests that provide hard and soft woods; petroleum
reserves; metals, including gold and silver in the Apuseni Mountains; numerous
rivers that supply hydroelectricity; and a Black Sea coastline that is the site
of both ports and resorts.
The Romanian people derive much of their ethnic and cultural character
from Roman influence, but this ancient identity has been reshaped continuously by
Romania’s position astride major continental migration routes. Romanians regard
themselves as the descendants of the ancient Romans who conquered
southern Transylvania under the emperor Trajan in 105 CE and of the Dacians who
lived in the mountains north of the Danubian Plain and in the Transylvanian
Basin. By the time of the Roman withdrawal under the emperor Aurelian in 271, the
Roman settlers and the Dacians had intermarried, resulting in a new nation. Both
the Latin roots of the Romanian language and the Eastern Orthodox faith to which
most Romanians adhere emerged from the mixture of these two cultures.
From the arrival of the Huns in the 5th century until the emergence of the
principalities of Walachia and Moldavia in the 14th century, the Romanian people
virtually disappeared from written history. During this time Romania was invaded
by great folk migrations and warriors on horseback who traveled across the
Danubian Plain. It is believed that in the face of ceaseless violence the
Romanians were forced to relocate, finding safety in the Carpathian Mountains.
As military chief Helmuth von Moltke observed: “Resistance having nearly
always proven useless, the Romanians could no longer think of any other way of
defense than flight.”For the next 600 years the Romanian lands served as
battlegrounds for their neighbours’ conflicting ambitions. The Romanians were
unable to withstand the imperial pressures first from the Byzantines and then
from the Ottoman Turks to the south in Constantinople (now Istanbul), or later
from the Habsburg empire to the west and from Russia to the east.

Independence and Kingdom of Romania

In an 1866 coup d'état, Cuza was exiled and replaced with Prince Karl
of Hohenzollern-Sigmaringen. He was appointed Domnitor, Ruling Prince of the
United Principality of Romania, as Prince Carol of Romania. Romania declared its
independence from the Ottoman Empire after the 1877-1878 Russo-Turkish War, in
which the Ottomans fought on the Russian side.
In the 1878 Treaty of Berlin, Romania was officially recognized as an independent
state by the Great Powers. In return, Romania ceded the district Bessarabia to
Russia in exchange for access to the Black Sea ports and acquired Dobruja.
[citation needed] In 1881, the Romania's principality status was raised to that
of a kingdom and on 26 March that year, Prince Carol became King Carol I of
Romania.
The period between 1878 and 1914 period was one of stability and progress
forRomania,the SecondBalkanWar,Romaniajoined Greece, Serbia and Montenegro agains
t ulgaria.Inthe TreatyofBucharest(1913) Romaniagained SouthernDobrudja counties Q
uadrilater, Durostor and Caliacra

The governments of Britain and the United States repeatedly protested the brutal
treatment of Romanians Jews, who were regarded as aliens who had no civil or
political rights. The Romanian government tolerated their frequent humiliation
and exclusion from many professions and government services. Romania engaged in
arbitrary expulsions of Jews as vagabonds and tolerated violent pogroms against
Jews, many of whom fled to the United States.

Geography

Romania is bounded by Ukraine to the north, Moldova to the northeast,the Black

Sea to the southeast, Bulgaria to the
south, Serbia to the southwest,
and Hungary to the west. There is a
certain symmetry in the physical
structure of Romania. The country forms
a complex geographic unit centred on
the Transylvanian Basin, around which
the peaks of the Carpathian
Mountains and their associated subranges
and structural platforms form a series
of crescents. Beyond this zone, the
extensive plains of the south and east
of the country, their potential
increased by the Danube River and its
tributaries, form a fertile outer crescent extending to the frontiers. There is
great diversity in the topography, geology, climate, hydrology, flora, and fauna,
and for millennia this natural environment has borne the imprint of a human
population.
Size :
238,397 km2 (92,046 sq mi), Romania is the twelfth-largest country in Europe. 
Land Boundaries :
Bulgaria 631 km (382 mi), Hungary 448 km (278 mi), Moldova 681 km (423
mi), Serbia 546 km (339 mi), and Ukraine to the north and east for 649 km (403
mi).
Climate :
Romania has a climate that is transitional between temperate and continental.
Climatic conditions are somewhat modified by the country's varied relief. The
Carpathians serve as a barrier to Atlantic air masses, restricting their oceanic
influences to the west and center of the country, where they make for milder
winters and heavier rainfall. The mountains also block the continental influences
of the vast plain to the north in Ukraine, which bring frosty winters and less
rain to the south and southeast. In the extreme southeast, Mediterranean
influences offer a milder, maritime climate. The average annual temperature is
11 °C (51.8 °F) in the south and 8 °C (46.4 °F) in the north. In Bucharest, the
temperature ranges from −29 °C (−20.2 °F) in January to 29 °C (84.2 °F) in July,
with average temperatures of −3 °C (26.6 °F) in January and 23 °C (73.4 °F) in
July. Rainfall, although adequate throughout the country, decreases from west to
east and from mountains to plains. Some mountainous areas receive more than
1,010 mm (39.8 in) of precipitation each year. Annual precipitation averages
about 635 mm (25 in) in central Transylvania, 521 mm (20.5 in) at Iași in
Moldavia, and only 381 mm (15 in) at Constanța on the Black Sea.

Topographic Regions
The Carpathian Mountains, Romania's major
physical feature, define the country's
overall topographical pattern. Roughly
forming an arc in the center of the
country, their various branches separate
the Transylvanian Plateau in the center
from a wide band of lowlands on the edges,
extending to the country's eastern,
southern, and western borders.
Romania is traditionally divided into
several distinct regions. Transylvania,
which forms a large wedge in the north and
northwest and makes up one-third of Romania, is by far the largest region. It
encompasses the central Transylvanian Plateau, all of the Carpathian Mountains
except for the most southeastern section, and the hilly terrain in the
northwestern part of the country. Walachia, which curves around Transylvania in
the south and southeast, is the country's major lowland region, encompassing the
plains of the Danube River to the south of the Transylvanian Alps. The part of
Walachia west of the Olt River is a subregion known as Oltenia. Dobruja occupies
the southeastern corner of Romania, bounded by the path of the Danube where the
river flows northward for about 160 kilometers (100 miles) before it again turns
to the east for its final passage to the sea. Moldavia, in the northeast,
constitutes about one-fourth of the country's area. Much of this region is hilly
or mountainous, and it is heavily forested. To the southwest, in the opposite
corner of the country from Dobruja, is the Banat region. Romania is located on
the Eurasian Tectonic Plate.
Seacoast and Undersea FeaturesRomania borders
the western end of the Black Sea, which is an
inland body of water lying between Europe and
Asia. The Black Sea contains calm waters that
are free of tides and dangerous marine life.
Called the "Hospitable Sea" by the ancient
Greeks, the Black Sea is half as saline as the
Mediterranean Sea and has gentle sandy slopes,
making it ideal for swimming.
The floor of the Black Sea is composed of a
shallow shelf that extends about 10 to 11
kilometers (6 to 7 miles) from the coast of Romania. On this shelf, the average
sea depth is 100 to 110 meters (330 to 360 feet). This shelf then drops steeply
to the sea floor, which is unusually flat and reaches depths of 2,195 meters
(7,200 feet). Romania claims the continental shelf off its coast to a depth of
200 meters (656 feet).

Rivers and Waterfalls

All of Romania's rivers and streams drain to the Black Sea. All of the rivers
also join the Danube River, except for the minor streams that rise on the eastern
slopes of the hills near the coast and flow directly into the sea. Those flowing
southward and southeastward from the Transylvanian Alps drain to the Danube
directly. Those flowing northward and eastward from Moldavia and Bukovina reach
the Danube by way of the Prut River. Most of the Transylvanian streams draining
to the north and west, including the Mureş and Someş Rivers, flow to the Tisza
River, which joins the Danube in Serbia and Montenegro, north of Belgrade. The
Danube rises in the southwestern part of Germany and follows a winding, generally
eastern course through Austria, Hungary, Serbia and Montenegro, and Romania
before finally emptying into the Black Sea, 2,850 kilometers (1,771 miles) from
its source. It is the second-longest river in Europe and a vital commercial and
transportation route.
As the Danube approaches its delta, it divides into a number of channels. It also
forms several lakes, some of which are quite large. At the delta it divides into
three major and several minor branches. The delta has an area of about 2,590
square kilometers (1,000 square miles) and grows steadily as the river deposits
billions of cubic feet of sediment into the sea annually. Its main tributaries
flowing through Romania include the Siret, Ialomiţa, Argeş, Olt, Jiu, and Timiş.
The Argeş has an important tributary of its own: the Dîmboviţa River.
The Dobruja region provides Romania's access to the Black Sea and contains most
of the Danube River delta. Much of the Danube River delta, as well as a belt of
land up to 32 kilometers (20 miles) wide along most of the river's length, is
marshland. The majority of this land is not easily exploited for agricultural
purposes, although some of the reeds and natural vegetation have limited
commercial value. The delta is a natural wildlife preserve, particularly for
waterfowl, and is large enough so that many species can be protected. Willows
flourish in parts of the delta and there are a few deciduous forests in the
north-central section.

Mountain Ranges
The mountain ranges in the eastern part of the country are referred to as the
Moldavian Carpathians. They have maximum elevations of about 2,286 meters (7,500
feet) and are the most extensively forested part of the country. Their highest
peak, Mount Pietrosu (2,303 meters/7,556 feet), rises in the Rodna Mountains in
the far north at the border with Ukraine. Two volcanic ranges, the Oas and
Harghita Mountains, extend for about 400 kilometers (250 miles) along the western
edge of the Moldavian Carpathians. They contain Romania's only crater lake, the
St. Ana Lake, as well as roughly two thousand mineral water springs.
The slightly higher southern ranges, called the Transylvanian Alps, form the
southern border of Transylvania and have the highest peaks and the steepest
slopes in the country. Romania's highest point, Mount Moldoveanu, rises to a
height of 2,544 meters (8,346 feet) about 161 kilometers (100 miles) northwest of
Bucharest. Among the alpine features of the Transylvanian Range are glacial
lakes, upland meadows and pastures, and bare rock along the higher ridges. Some
of the mountains are predominantly limestone, with caves, waterfalls, and
underground streams.

SOCIETY

Population : Romania's population declined steadily in recent years, from 21.7

million in 2002 to 19.9 million in 2014. More specifically, in the last decade,
the population of Romania decreased by 7.5%, the most important moment for the
country's demography being 2008, when the number of inhabitants dropped by
600,000 people. Among the causes of population decline are high mortality,
low fertility rate after 1989, and emigration.
Ethnic Group : Slightly more than 10% of the population of Romania is formed
of minorities of Romania. The principal minorities are Hungarians and Roma,
although other smaller ethnic groups exist too. Before World War II, minorities
represented more than 28% of the total population. During the war that percentage
was halved, largely by the loss of the border areas of Bessarabia and
northern Bukovina, to the former Soviet Union, now Moldova and Ukraine and
southern Dobrudja (to Bulgaria). Two-thirds of the ethnic German population
either left or were deported after World War II, a period that was followed by
decades of relatively regular migration. During the interwar period in Romania,
the total number of ethnic Germans amounted to as much as 786,000, a figure which
had subsequently fallen to circa 36,000 as of 2011 in contemporary Romania. One
of the reasons for which the number of Germans in Romania fell is because after
the Romanian Revolution there has been a mass migration of Transylvania Saxons to
Germany, in what was referred by British daily newspaper Guardian to as 'the most
astonishing, and little reported, ethnic migration in modern Europe'.
Religion : Religious affiliation tends to follow ethnic lines, with most
ethnic Romanians identifying with the Romanian Orthodox Church. The Greek
Catholic or Uniate church, reunified with the Orthodox Church by fiat in 1948,
was restored after the 1989 revolution. The 2002 census indicates that 0.9% of
the population is Greek Catholic, as opposed to about 10% prior to 1948. Roman
Catholics, largely ethnic Hungarians and Germans, constitute 4.7% of the
population; Calvinists, Baptists, Pentecostals, and Lutherans make up another 5%.
There are smaller numbers of Unitarians, Muslims, and other religions
Language : In Romania there are several spoken languages. Beside Romanian,
the countrywide official language, other spoken languages are spoken and
sometimes co-official at a local level. These languages
include Hungarian, Romani, Ukrainian, German, Russian, Turkish, Tatar, Serbian,
Slovak, Bulgarian, and Croatian

Economy
Fears at the beginning of 2019 related to the slowdown of the economic growth and
the difficulties of keeping the budgetary deficit under the limit of 3% of GDP
were justified. TheThe economic growth slowed down to 4% in the first three
quarters of the year, according to a recent release of the National Institute of
Statistics, after a continuous quarterly decrease of the economic performance.
The third quarter of 2019 saw a GDP increase of 3%, as compared to 4.6% in the
first half of the year. The industry and the agriculture had a negative impact on
GDP growth. Industry is contributing with 22.6% in GDP, but the reduction of the
activity volume by 1% led to a negative contribution with 0.2 percentage points
to the GDP growth. Agriculture’s output reduced even higher, by 4.1%, but since
its contribution in GDP is limited at 5%, the impact on GDP growth was a decline
by 0.1 percentage points. Consumption and constructions were the main sectors
with a positive contribution of 0.9 percentage points and 0.6 percentage points
respectively in GDP growth. The economic growth continues to be driven by
consumption, which economists warn is not sustainable on the long term.
The problem of the trade deficit amplified. The last data on the first ten months
of this year indicates that the trade deficit has already exceeded EUR 14 billion
(6.5% of GDP), which is 18.4% higher than in the first ten months of 2018. The
increase is almost double compared to the official forecasts of the trade deficit
growth for 2019, initially established at 9.9%. The trend of higher increase in
imports than in exports is perpetuating. Therefore, although the cumulated value
of the exports reached EUR 58 billion in the first 10 months, meaning a 1.7%
increase, the imports hit EUR 72 billion, after a 4.6% increase as compared to
the previous year. Such a situation is the consequence of the social budgetary
expenditures. The increase of the wages and pensions stimulated the demand for
goods and services. As the local companies could not provide the required goods,
the adjustment was made by price and imports. In these circumstances, Romania
remained the country with the highest annual rate of inflation in the European
Union, which reached 3.2% in October as compared to last year, although on a
decreasing trend. However, official data record an increase for November, and the
National Bank of Romania expects a value of 3.8% at the end of the year.
Once with the accommodation of the new Government, a huge debate related to the
budgetary deficit emerged. One of the most important predictions for this year –
that of the impossibility of having a budgetary deficit lower than 3% of GDP,
became true. The budgetary deficit is estimated at 4.3% of GDP this year and
there are accusations that the previous government did not initiate the needed
measures for preventing such a situation in time. Unfortunately, the budgetary
situation could not be adjusted in 2020. The budget for the next year will be
built on a budgetary deficit of 3.6%, as agreed following negotiations with the
European Commissions. However, there are fears that such a target could not be
achieved if pensions will further increase, as already established. UnderUnder
these circumstances, the economic perspectives at the end of the year are gloomy.
The international rating agency Standard&Poor’s recently took the decision of
downgrading the outlook of Romania’s rating from stable to negative, following
the risks emerging from increased budgetary deficit and the plans of implementing
new raises of pensions in 2020. Estimates show that if the pension law adopted in
July is applied starting with next year, the state’s pension spending will
increase by over 3% of GDP in 2020-2022.
S&P’ opinion is that the large spending deviations of the previous government are
going to be difficult to be adjusted by the actual government given the following
rounds of elections in 2020 and therefore the budget deficit will be even higher,
of 4% of GDP in 2020, and, in the absence of measures regarding pension
increases, it will reach 6% of GDP in 2022. As a consequence, the share of public
debt in GDP will increase, which will lead to an increase in interest
expenditure. The situation would be worsened, as an economic growth of only 3% is
forecasted for that period.
However, the country’s long- and short-term foreign and local currency sovereign
credit ratings were maintained at ‘BBB-/A-3’. Over the next two years, the agency
could lower its rating if no action is taken for adjusting the external and
fiscal imbalances.
Gross Domestic Product (GDP): Romania's GDP Per Capita reached 12,445.659 USD in
Dec 2018, compared with 10,839.159 USD in Dec 2017. Romania GDP Per Capita data
is updated yearly, available from Dec 1981 to Dec 2018, with an average number of
2,292.917 USD. The data reached an all-time high of 12,445.659 USD in Dec 2018
and a record low of 858.912 in Dec 1992. CEIC calculates GDP per Capita from
annual Nominal GDP and annual Population and converts it into USD. The National
Institute of Statistics provides Nominal GDP in local currency and Population.
The National Bank of Romania average market exchange rate is used for currency
conversions. GDP per Capita prior to 1995 is sourced from the World Bank.

In the latest reports, Romania's GDP expanded 3.322 % YoY in Sep 2019. Romania's
Nominal GDP reached 62.062 USD bn in Sep 2019. Its GDP deflator (implicit price
deflator) increased 5.833 % in Sep 2019. Gross Savings Rate of Romania was
measured at 22.243 % in Sep 2019.
Government Budget : Finance ministry data showed the budget will be based on an
economic growth assumption of 4.1% for 2020 and budget revenue equivalent to
31.8% of gross domestic product (GDP). The budget deficit target will fall to
3.6% of GDP from this year's 4.4% but it is expected to remain above EU limits in
2020 and 2021.
The pension reform will push up spending from September but the government is
aiming to lower the deficit gradually to avoid shocks to the economy. It expects
a deficit of 3.3% in 2021 and 2.5% in 2022, well below European Commission
estimates.
Inflation : Inflation in Romania remains stable at over two-year low in March.
Consumer prices rose 0.5% month-on-month in March, up from February’s 0.3% climb.
The largest increase was recorded for prices for food, followed by services while
prices for non-food goods dropped bMeanwhile, inflation held steady at February’s
3.1% in March, the lowest print since October 2017. Thus, it remained within the
Central Bank’s 1.5%–3.5% target range. For its part, annual average inflation
inched down to 3.7% in March from 3.8% in the previous month.
Economics Consensus Forecast panelists see inflation averaging 2.5% in 2020,
which is down 0.8 percentage points from last month’s forecast. For 2021,
panelists see inflation averaging 3.3%.
Agriculture, Forestry and Fishery :
Agriculture has traditionally been the
backbone of the Romanian economy; more
than one-third of the land is devoted to
cultivation ,including vineyards,
orchards, and vegetable gardens. A
radical land reform, begun in 1921 and
completed in 1948, redistributed farmland
from large owners to peasant farmers, but
the restructuring of the economy after
the communist takeover included the
compulsory collectivization of
agriculture, carried out between 1949 and
1962. Since 1989, state farms have been
retained as large units of up to about 120 acres (50 hectares) with shareholders,
but collective farms have been broken up into individual holdings—although in
some areas they have been replaced by loose cooperative associations. Romania
faced major problems following the breakup of these collective farms and the
resulting uncertainty of ownership. These small individual plots became devoted
to the subsistence crops traditionally cultivated by peasants. Despite a
bountiful cereal crop in 1995, there was an overall downward trend in agriculture
in the 1990s, as the endemic lack of capital investment and limited technologies
continued to hinder the agricultural sector. Moreover, irrigation systems that
had been installed during the communist era, especially on the southern and
western plains, fell into disrepair by 2000. Restoration efforts have been under
way with aid from the World Bank since 2003. In the early 21st century, more than
one-fourth of the labour force was employed in agriculture, forestry, and
fishing, but the industries accounted for less than one-tenth of the
Romanian GDP.

Mining and Mineral : The 2017-2035 Mining Industry Strategy of the Romanian
Government (Mining Strategy) lists the following primary mineral resources and
their production potential, Coal, more than 3800 million tonnes, salt, reserves
of 4,390 million tonnes, gold and silver, reserves of 760 tonnes, cupriferous
ore, reserves of 443 million tonnes. The Minerals Encyclopaedia in Romania
presents a table with the main reserves of mineral resources, by quantity,
according to which Romania has the following, 2,800 million tonnes of lignite
reserves.
900 million tonnes of pit coal, 900 million tonnes of copper deposits at a
concentration of at least 16% pure copper, 4,000 million tonnes of salt, 6,000
tonnes of gold and silver deposits, 90 million tonnes of polymetallic minerals.
One tonne of polymetallic ore contains:
10 grammes of molybdenum;
30 grammes of nickel and cobalt;
50 grammes of chromium;
300 grammes of gallium;
1,000 grammes of titanium;
2,500 grammes of vanadium; and
5,000 grammes of arsenic.
Industry and Mnaufacturing : Over 2009-2018, Romania’s industrial output
increased by an average annual rate of 5% (5.8% in the manufacturing sector),
after the 6% contraction caused by the recession in 2008-2009. Romania’s industry
relies in no small extent and increasingly on exports, and both the industry and
the exports are increasingly dependent on the automotive industry as part of a
regional trend. The country’s industry thus remains vulnerable to the activity
and consumer confidence in Western Europe, while still having open the option of
substituting a larger part of the imports on the local market.
The seasonally-adjusted industrial production index declined for the fourth month
in a row in January, by 1.5% m/m. However, the index in the manufacturing
industries increased by 0.9% m/m, compensating for most of the 1.1% m/m decline
in December.
Sector-wise, the transport means (car) production maintained a robust growth rate
of 8.6% year-on-year in January, while the output of electrical equipment rose as
well, by 7.9%. However, light industries contracted by double-digit annual rates
while the production of alcoholic drinks and tobacco decreased by 4.9% and 8.5%
on a yearly basis as well.
Energy : Romania has significant oil and gas reserves, substantial coal deposits
and it has substantial hydroelectric power installed. However, Romania imports
oil and gas from Russia and other countries. To ease this dependency Romania
seeks to use nuclear power as an alternative to electricity generation. So far,
the country has two nuclear reactors, located at Cernavodă, accounting for about
18–20% of the country's electricity production, with the second one online in
2007. Nuclear waste is stored on site at reprocessing facilities.
Electric power in Romania is dominated by government enterprises, although
privately operated coal mines and oil refineries also existed. Accordingly,
Romania placed an increasingly heavy emphasis on developing nuclear power
generation. Electric power was provided by the Romanian Electric Power
Corporation (CONEL). Energy used in electric power generation consisted primarily
of nuclear, coal, oil, and liquefied natural gas (LNG). Of the electricity
generated in 2007, 13.1 percent came from nuclear plants then in operation, 41.69
percent from thermal plants (oil and coal), and 25.8 percent from hydroelectric
sites. It was predicted in 2007 that the generation structure by the year 2010
would be 10.2 percent hydroelectric, 12.2 percent oil, 22.9 percent coal, 10.2
percent LNG, and 44.5 percent nuclear.
Tourism : Over 5.2 million arrivals were recorded in touristic structures in
Romania in the first six months of 2018 – a 4.1 percent increase year-on-year. Of
the total, 75.8 percent were Romanian tourists, according to the data published
on Friday by the National Institute of Statistics. Among foreign tourists, most
arrivals were from Germany 144,700, Israel 120,200 and Italy 112,500.
Overnight stays recorded in touristic structures in the same period totaled 10.3
million, a 2.5 percent increase y/y, with 76.8 percent Romanian tourists. The
average length of a stay was two days for Romanian tourists and 1.9 days for
foreign tourists. The net usage index for accommodation units in the first half
of 2018 was 25.7 percent over the total number of touristic accommodation
structures, a 0.4 percent increase y/y. Higher accommodation values were seen in
hotels (32.7 percent), ship accommodation 24.5%, hostels 19.5%, tourist villas
19.2% and guesthouses 18.2%.
By county, the most tourist arrivals in touristic structures that offered
accommodation were in Bucharest (991,400), Brasov (594,200), Cluj (289,800) and
Constanta (289,100), while the number of overnight stays by tourists were the
highest in Bucharest (1.6 million), Brasov (1,15 million), Constanta (874,700)
and Cluj (526,200).The arrivals of foreign visitors to Romania recorded at border
points totalled 5.1 million, a 7.1 percent increase compared to the same period
of last year. Most foreign tourists came from European countries (92.5 percent),
and 50.9 percent of them were from the EU. Among EU states, the most arrivals
were registered in Bulgaria (28 percent), Hungary (27.3 percent) and Italy (8.1
percent).
On the other hand, the departures of Romanians going abroad recorded at border
points totalled 9.58 million, a 3.8 percent increase y/y. Road transport means
were the most frequently used (67.7 percent of departures).
In June 2018, compared to June 2017, the arrivals in touristic accommodation
structures had a 0.1 increase, while overnight stays decreased by 1 percent. At
border points, 3.1 percent more foreign visitors were registered, while 4.6
percent more Romanians passed by these points to go abroad.
Labor : Labor Force Participation Rate in Romania decreased to 55.10 percent in
the fourth quarter of 2019 from 55.80 percent in the third quarter of 2019.
Foreign Economic Relations : Since December 1989, Romania has actively pursued a
policy of strengthening relations with the West in
general, more specifically with the U.S. and the
European Union. Romania was a helpful partner to the
allied forces during the first Gulf War, particularly
during its service as president of the UN Security
Council. Romania has been active in peace support
operations in Afghanistan, UNAVEM in Angola,
IFOR/SFOR in Bosnia, KFOR and EULEX in Kosovo, and in
Albania. Romania also offered important logistical
support to allied military operations in Iraq in 2003
and, after the cessation of organized hostilities,
has been participating in coalition security and
reconstruction activities. Romania is a member of the
Organization for Security and Cooperation in Europe
(OSCE), which it chaired in 2001.
Romania was the first country to enroll in the NATO Partnership for Peace
program. NATO member states invited Romania to join the Alliance in 2002, based
on Romania's rapid progress in modernizing its armed forces and its contributions
to allied peacekeeping and other military operations. Romania officially became a
member of the North Atlantic Treaty Organization on March 29, 2004 after
depositing its instruments of treaty ratification in Washington, DC. In 1996,
Romania signed and ratified a basic bilateral treaty with Hungary that settled
outstanding issues and laid the foundation for closer, more cooperative
relations. In June 1997, Romania signed a bilateral treaty with Ukraine that
resolved certain territorial and minority issues, among others. Romania also
signed a basic bilateral treaty with Russia in July 2003. RomaniaRomania hosted
President Bush's final NATO Summit April 2-4, 2008. The venue symbolized the
expansion of the Alliance from the Baltic to the Black Sea, and set new goals for
years to come.
Romania acceded to the European Union on January 1, 2007 along with Bulgaria,
bringing the number of EU states to 27. Romania is a strong advocate for a
"larger Europe," encouraging other countries that were formerly part of the
Soviet sphere to integrate into both NATO and the EU.
Imports : In 2017 Romania imported $81.4B, making it the 39th
largest importer in the world. During the last five years the
imports of Romania have increased at an annualized rate of
3.4%, from $68.9B in 2012 to $81.4B in 2017. The most recent
imports are led by Vehicle Parts which represent 4.18% of the
total imports of Romania, followed by Packaged Medicaments,
which account for 3.36%.

Exports : In 2017 Romania exported $70.5B,

making it the 41st largest exporter in the world. During the
last five years the exports of Romania have increased at an
annualized rate of 3.8%, from $58.4B in 2012 to $70.5B in 2017.
The most recent exports are led by Vehicle Parts which represent
10.1% of the total exports of Romania, followed by Insulated
Wire, which account for 6.45%.

Trade Balance : Romania's Trade Balance recorded a deficit of 1.4 USD bn in Feb
2020, compared with a deficit of 1.5 USD bn in the previous month. Romania's
Trade Balance data is updated monthly, available from Aug 1990 to Feb 2020, with
an averaged value of -608.7 USD mn. The data reached an all-time high of 53.3 USD
mn in Jul 1994 and a record low of -3.6 USD bn in Sep 2008. CEIC converts monthly
Trade Balance into USD. The National Institute of Statistics provides Trade
Balance in EUR. Federal Reserve Board average market exchange rate is used for
currency conversions. Trade Balance prior to January 2003 is sourced from the
International Monetary Fund.

In the latest reports, Romania's Total Exports reached 6.5 USD bn in Feb 2020, an
increase of 0.8 % year on year. Total Imports recorded 7.9 USD bn in Feb 2020, an
increase of 2.4 % year on year.

Balance of Payment : Current Account (CA) data was reported at 8,636.000 EUR mn
in Feb 2020. This records a decrease from the previous number of 9,200.000 EUR mn
for Jan 2020

Foreign Investment : In 2018, FDI flows in Romania totaled to USD 5.8 billion, a
slightly increase compared to the previous year (USD 5.4 billion). Equity
investments, including reinvested profits, totalled EUR 3.5 billion, while
intercompany lending recorded a net value of EUR 875 million. The total stock of
FDI stood at USD 94 billion (39.2% of the GDP) at the end of 2018 according
to UNCTAD's 2019 World Investment Report. According to BNR data (National Bank of
Romania), the main sectors in 2018 were manufacturing (30.9% of total FDI stock),
construction and real estate transactions (16.8% of FDI stock), trade (15.8%),
financial intermediation and insurance (11.5%). The main investing countries were
the Netherlands (23.9%), Germany (12.7%), Austria, (12.2%), Italy (9.5%) and
Cyprus (6.2%). Bucharest is the region that attracts most foreign capital in the
whole country (60.7% of the total).
In terms of FDI, Romania has numerous advantages: in addition to a large domestic
market, the country has a strong industrial tradition, coupled with a cost of
labour among the lowest in the EU and a well-educated workforce. This has been
the reason for the development of a significant industrial sector, particularly
car making, but also services. Furthermore, Romania has one of the lowest tax
rates in the EU. The tax regime favours industrial investment and start-up
initiatives equally. A gradual pick up of projects co-financed by EU funds brings
support for investment, which is expected to recover. On the other hand,
corruption is still a problem, so as legislative instability and weak judicial
independence. Romania ranked 55th out of 190 economies in the 2020 Doing
Business report, issued by the World Bank (down by three positions compared to
the previous year).
Fiscal Year : Calendar Year

Transportation and Telecommunications

Transportation Overview : Transportation infrastructure in Romania is the

property of the state, and is administered by the Ministry of Transport and
Infrastructure, Constructions and Tourism, except when operated as a concession,
in which case the concessions are made by the Ministry of Administration and
Interior.[1]
The country's most important waterway is the river Danube. The largest port is
that of Constanța, which is the second largest port at the Black Sea. With over
13 million passengers Bucharest Airport is a major international airport and
European transportation hub. Air travel is used for greater distances within
Romania but faces competition from the state-owned CFR's rail network. Public
transport is available in most areas.
Roads : In 2018, Romania had 28,247 km of
dirt roads (“stone roads” and “ground roads”
as defined by the statistics office), almost
one third of all public roads, down by only
about 2,000 km compared to 2017. At the end
of 2017, Romania had 30,125 km of dirt roads,
accounting for 35% of the entire national
road network, according to data published on
Thursday by the National Institute of
Statistics (INS).
At the end of 2018, the public roads amounted to 86,234 km, out of which 17,740
km (20.6%) national roads, 35,085 km (40.7%) county roads, and 33,409 km (38.7%)
communal roads. From the point of view of the pavement, the structure of the
public road network indicated the following: 36,689 km (42.5%) modernised roads
(out of which 92.4% were modernised roads with hard and middle asphalt cover),
21,298 km (24.7%) light cover roads and 28,247 km (32.8%) dirt (stone and ground)
roads. As to the technical state of the public roads, 38.4% of the modernised
roads and 46.6% of the light cover roads had overrun service duration.
Railroads : Romania has one of Europe’s
most extensive railway networks and,
although they are not the fastest way to
get around Romania, trains may be
considered for short distance trips. The
state-owned railways company CFR Calatori
is no longer the only option as several
other private companies have also started
operating trains on several routes across
the country. Because CFR trains usually
travel too slowly to be a good choice for
long distance journeys, the airlines have
become serious competitors to the state-
controlled railways operator
However, if you are not in a hurry to get to the destination, trains are an
option to consider because they offers passengers the possibility to relax and
enjoy the country’s beautiful landscapes.
When it comes to CFR Calatori, one of the most important things to know is that
there are different types of trains to choose from. The main categories for
domestic transport are Regio (symbol R) and InterRegio (IR) trains. The Regio
trains are slower than the InterRegio ones, as they usually stop in every
station, but they are also cheaper.
Tariffs are mainly calculated based on the type of train, the comfort category
(class I or class II), and the distance of the trip. Tickets can be purchased
from the ticket offices located in train stations, vending machines installed in
CFR stations and online. The company offers several types of discounts, such as
the ones for groups, for round trips, for children, and for buying tickets
online. A traveler can plan a journey and buy tickets online on CFR.
Another important thing to know is that it’s not unusual for a CFR train to
register delays, especially those running on long distances. Of course, extreme
weather conditions, such as very high temperatures or heavy snowfall, can also
have an impact on the train schedule.
Also, due to lack of investments in the railway infrastructure in the past years,
traveling on long distances with a CFR train may put one’s patience to a real
test. The average speed of a train in Romania is of 45 km per hour, with trains
traveling faster on the Bucharest-Constanta route. For example, a direct trip by
IR train from Bucharest to Timisoara takes over nine hours while a trip from
Bucharest to Cluj-Napoca can take between 10 and 12 hours. Going by train from
Bucharest to Iasi may also not be the best idea, as the CFR trains linking these
two cities make around 6-7 hours on this route.
Thus, sometimes the better way to travel on long
distances in Romania may be by air, as several
low-cost companies operate domestic flights
between big cities.
Ports : the Romanian ports representing key
components in the European river-maritime network.
Ports such as Galaţi, Tulcea, Giurgiu and
Constanţa are part of the pan-European Corridor VII and ensure the connection to
the East of the goods coming from the Old Continent through some of the most
important ports in Europe and even in the world, such as  Rotterdam, Vienna,
Mainz and Strasbourg. The strategic position of Romanian ports grants Romania the
opportunity to become the main gate towards the goods traffic between the Western
Europe and Asia. However, the evolution of the Danube ports is slowed down by
difficulties in accessing the European funds necessary to the financing of large
development projects and by the economic downturn which caused drops in the
traffic of goods.
Inland Waterways : The main waterways in Romania are Mures (473 miles on
Romania's territory), Prut (461 miles on Romania's territory), Olt (382 miles),
Siret (347 miles on Romania's territory), Ialomita (259 miles), Somes (233 miles
on Romania's territory) and Arges (217 miles). In the east, river waters are
collected by Siret and Prut rivers. In the south, waters flow directly into the
Danube and in the west most of them are collected by Tisa River.

Civil Aviation and Airports : When flying to Romania, you have quite a few
airports to chose between, currently there are 12 international airports which
have commercial traffic.  Henri Coandă Airport is Romania’s busiest international
airport. Also famous as Traian Vuia Airport, Timisoara Airport serves the same
named region of Romania. It is located in the historical region of Banat. Iași
Airport is a Romanian international airport located 8km east of the city centre
of Iași. It is one of the country’s oldest airports and the fourth busiest
airport in terms of passenger traffic. Bacău Airport is also known as George
Enescu Airport. Târgu Mureș Airport also Known also as Transylvania Airport,
Târgu Mureș Airport is a smaller international airport situated 14km southwest of
the same named city in central Romania. Sibiu Airport serves the historic city of
Sibiu. Craiova Airport  This airport is located in south-western part of the
country, 7km east of Craiova, one of Romania’s biggest cities. Constanța
Airport Also known as Mihail Kogălniceanu Airport is located 26 kilometres north-
northwest of Costanta city centre.

CHAPTER 2