Romania - Market OverviewRomania - Market Overview
Romania is a market with excellent potential, a strategic location, and a favorable business climate. Its economy is among the EU’s fastest growing; 4.8% growth in 2016 and 6.9% growth in 2017 (the highest since 2008). This growth is primarily consumption-based driven by the Government of Romania’s (GOR) lax fiscal policy, namely tax cuts, minimum wage increases and public sector and pension increases. Nevertheless, the economy is booming in nearly every sector.
The National Bank of Romania maintained a relaxed monetary policy to support the economy after the Financial Crisis in 2008. The central bank gradually cut interest rates from 10.25% at the beginning of 2009 to 2.5% at present. However, beginning in early 2018, the Bank has started monetary tightening - raising rates from 1.75 to 2.5% and likely to 3% by year end. Public debt is currently at 35% of GDP, and the Romanian currency has been relatively stable against the euro since 2009.
Romania is eligible to receive approximately €43 billion ($57.1 billion) in EU funding for the 2014-2020 programming period, but Romania’s lack of institutional capacity has limited its ability to effectively access these funds. Bilateral trade in goods between Romania and the United States amounted to $3.149 billion in 2017, with $2.2 billion in Romanian exports to the United States and $948 million in U.S. exports to Romania.
The balance of this report is intended to aid American companies in developing and executing new and increased sales to this important and promising – yet still transitional – EU market.
Romania Trade Development and Promotion