Economy of Romania

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Romania has a developing market economy[6] and is one of the most recent entrants to the European Union. Romania entered the 1990s a relatively poor country, even by Balkan standards, largely a result of the failed Ceauşescu economic policies of the 1970s.[7] It remains the poorest EU member state by GDP per capita. However the collapse of the Ceauşescu regime in 1989 and its recent entry to the European union have led to an improved economic outlook. In the Romanian press it has been referred as a "Tiger" due to its high growth rates and rapid development.[8] Until 2009, Romanian economic growth was among EU’s fastest.[9] Gross domestic product contracted 7.1% in the third quarter of 2009 from the same period a year earlier, and the IMF estimates that the budget deficit will be as high as 7.8% of GDP.[10]

Romania has the 11th largest economy in the European Union by total nominal GDP and the 8th largest based on purchasing power parity and is one of the fastest growing markets in recent history with consistent annual GDP growth rates above 6% (+8.4% for 2008[11][12]). Its capital, Bucharest, is one of the largest financial and industrial centres in the region, with a metropolitan area of more than 2.6 million people. Romania has experienced growth in foreign investment with a cumulative FDI totaling more than $100 billion since 1989.[13]

Prior to the late 2000s recession, some economic predictions indicated that Romanian GDP would double from 2006 to 2011,[14] and one scholar has even suggested that Romania will overtake Italy in GDP per capita by 2020.[15] Despite a growth rate of 7.1% in 2008,[16] in 2009 the Romanian economy was heavily affected by the global financial downturn and contracted by some -7.2%.[2] Forecasts for 2010 are mixed, with some analysts and institutions predicting recovery, while others estimate a continued negative growth of about -1%.[17][18][19] Future prospects are tied to the country's increasingly important integration with the European Union member states. The country is expected to join the Eurozone no later than 2014.[citation needed]


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