Economic News

Economic profile

With a population of 22 million, Romania is the second largest market in Central Europe. Romania has several real advantages:

- an excellent location at the intersection of the main Western Europe and Asian trade routes between Southern Europe (Mediterranean) and North Europe; (Constanţa is the largest port at the Black Sea, the proximity to the Danube - Rin - Main canal linking the Black Sea to the North Sea);

- a strong workforce, including well-trained specialists in technology, information technology and engineering;

- a multitude of natural resources (oil, gas, etc.) and a vast fertile agricultural area;

- a huge tourist potential;

- diversified industrial structure;

- legislation favoring foreign investment, based on free and non-discriminatory market access.

In 1990, Romania undertook an economic reform process that accompanied and completed its rapprochement or, in some cases, integration into international institutions and organizations - the European Economic Community (which became the European Union / EU) and NATO, but also the International Monetary Fund, the World Bank, the World Trade Organization (WTO) or the Organization for Economic Cooperation and Development (OECD).

The 1990s were marked by economic decline, a worse situation in the first years of transition (1990-1992), when the economy declined by 27% and in 1997-1999 (with a decline of over 12%). This trend, accompanied by quasi-permanent inflation and a significant increase in unemployment, evolved over decentralization, privatization, and, especially after 1997, accelerated economic restructuring.

The 2000-2008 period generated a strong economic recovery, with annual growth rates of over 6% in the period 2003-2008, when Romania experienced a significant increase in consumption and productive investment.

The improvement of the business environment, the effects of the flat tax rate and the positive attitude of the foreign partners towards Romania in the context of joining NATO and the EU contributed to the attraction of a record amount of foreign investment. Between 2005 and 2008, foreign direct investment flows amounted to approx. EUR 28 billion, or more than half of total foreign investment over the last 20 years.

Foreign trade has grown sensibly in both quality and quantity. The value of Romania's trade has increased significantly, especially in recent years, when annual growth rates were over 10%. 2008 saw a peak in foreign trade, which accounted for around 90 billion euros (out of which about 34 billion exports). The main trading partners of Romania in the last decade were Germany, Italy, France, Turkey, Hungary, the Netherlands, Great Britain and Austria.

In terms of quality, the structure of trade has been marked by major changes; Romania is exporting more and more value-added products and services, reflecting economic restructuring, the ability of the national economy to deliver goods and services, and better use of incentives for access to foreign markets. Currently, the EU accounts for over 70% of Romania's foreign trade, indicating the level of economic integration in the single European market.

Since the global financial crisis, which began in autumn 2008, trade and credit flows have fallen, and 2009 and 2010 have been years of economic downturn. Although the Romanian banking system is solid and the economy has been growing for almost a decade, Romania was affected by the global economic and financial crisis, with a decline in GDP of 7% in 2009 and 2% in 2010, together with a budget deficit and rising unemployment. Foreign direct investment also declined in 2009 to around EUR 4.5-5 billion (about half of the figure for the previous year).

The government's efforts to cushion the effects of the crisis were geared towards boosting economic growth, maintaining investment capacity and protecting the economic interests of the population by reducing the number of taxes.

In order to prevent further difficulties, Romania has agreed with the EU and international financial institutions on a two-year financial assistance package worth almost 20 billion euros. The main objectives are to support the balance of payments (in particular to ensure judicious public sector spending), secure the flow of credit and investment and strengthen the central bank's reserves.

Romania's macroeconomic prospects have improved noticeably lately, against the backdrop of external demand, even though unemployment problems persisted after the crisis.

The Government of Romania will continue to meet the convergence criteria and adhere to the terms of the Stability and Growth Pact, as well as to ensure the long-term stability of the exchange rate with a view to joining the Euro.

Reforms must work at a rapid pace, focusing on decentralization of public administration, mobilization of public funds, and strengthening administrative capacity to generate projects to better absorb European funds and finance priority projects in the areas of infrastructure, agriculture, education, health, energy, the environment, and the creation of new business opportunities for investors.

Romania's strategic priorities for the next period are to develop infrastructure, ensure energy security and supply from alternative sources, modernize agriculture, improve the quality of education and health services.


Bureau of economic promotion and cooperation


1. Raising awareness among foreign partners regarding the Romanian realities, the stimulating business and investment environment, as well as the priority areas in which participation is encouraged.

2. Undertaking promotional actions with the public and private organisms in order to attract foreign capital in Romania.

3. Organizing meetings with businessmen from the residence country with the purpose of delivering information and signals related to financial, economic or legislative matters.

4. Assisting Romanian economic operators with checking the creditworthiness of the companies considered as potential partners.

5. Providing consultancy and specialized assistance to interested partners, in strict accord with the current legal regulation and the international commercial standards and practices; there will be considered the provisions of the bilateral and multilateral agreements with an impact on the commercial relations with the country of residence.

6. Providing specialized assistance to the governmental and non-governmental institutions and the Romanian companies, upon request, with the purpose of establishing of contacts in the country of residence for the realisation of commercial and cooperation transactions, including regarding third-party markets. Providing of assistance to the domestic economic operators that want to import from Romania.

7. Supporting the organisation of promotional actions for the increase of exports through:

- the active participation in the realization of the program of fairs and exhibitions in the country in which it operates and the submission of proposals for participation in those actions with impact on the Romanian export, both within national events and through the promotion programs of other institutions, organizations or even of Romanian companies.

- submission of proposals regarding the organization of specialized economic missions, symposiums, mini-exhibitions, including the use of any spaces available at diplomatic missions.

- providing specialized assistance to Romanian delegations in the market of the country of residence for export promotion actions, including supporting Romanian companies in obtaining information on the methodology and costs for the establishment and operation of their own business representatives in the country of residence.

8. Diversification of goods and services trade with the country of residence, aiming at ensuring the stabilisation of trade and payments balance.


Bilateral trade ROMANIA - DENMARK

At 31 December 2018, the value of bilateral trade was EUR 635.48 million, of which EUR 294.20 million exports (up 12.23% as compared to 2017) and EUR 341.28 million imports (up 1.5% compared to 2017). The volume of bilateral exchanges increased by 6.22% compared to 2017.





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