Romania Facts and Figures

Romania, a central player in Eastern Europe, combines a rich cultural legacy with a modernizing economy. Positioned at the crossroads between Eastern and Western Europe, Romania shares borders with Ukraine, Moldova, Bulgaria, Serbia, and Hungary, while the Black Sea forms its southeastern edge, facilitating significant trade connections. Romania’s geographic position has strengthened its role as a strategic gateway between Europe and the wider Eurasian region.

Bucharest, Romania’s capital, epitomizes the country’s unique mix of historical and modern influences. Known as “Little Paris” for its elegant architecture and tree-lined boulevards, Bucharest has evolved into a vibrant economic and cultural center, attracting businesses, investments, and tourists from across the globe.

Demographics of Romania

With a population of approximately 19.1 million (2023) and a median age of 42, Romania is an aging society with a significant working-age population comprising 65.4% of its citizens. The urbanization rate stands at 54.7%, reflecting the continued migration toward city life as Romania’s urban centers modernize. Although Romania’s population growth rate remains flat at 0.0%, the fertility rate of 1.8 signals modest reproductive levels. The average life expectancy is 75 years, indicative of Romania's improvements in healthcare and living conditions over the years.

Economic Profile

Romania’s economy, with a GDP of $351 billion in 2023 and a growth rate of 4.1%, ranks as the 43rd largest globally. The economy is diversified, with a strong industrial sector contributing 28.9% of GDP and a vibrant services sector comprising 57.6% of GDP. Manufacturing, representing 15.9% of GDP, is a critical driver within the industrial sector, highlighting Romania's legacy in engineering and production. Inflation, although down from 10.4% in 2023 to a projected 6% in 2024, remains a challenge, affecting purchasing power and cost stability. Romania’s trade balance shows a deficit of $31.3 billion, with exports reaching $100.6 billion and imports totaling $131.9 billion, underscoring the importance of bolstering its domestic industries. Unemployment is steady at 5.6% (2023), indicating a relatively stable labor market.

Public Finance and Fiscal Policy

Romania’s fiscal policy reflects ongoing efforts to maintain balanced growth despite external pressures. In recent years, Romania’s net lending and borrowing have shown a slight improvement, with the deficit as a percentage of GDP shifting from -5.78% in 2022 to -5.69% in 2023. General government debt is relatively moderate at 47.19% of GDP (2022), with central government debt at 47.63% of GDP, up from 34.12% in 2012. Romania’s balanced approach to debt management and fiscal policy positions it to support continued economic growth while managing its public finances.

Security and Defense Spending

Romania’s defense strategy is grounded in maintaining regional stability, with military spending constituting 1.7% of GDP (2022) and a military personnel count of approximately 71,000. As an active NATO member, Romania prioritizes defense investments to ensure national security and contribute to the alliance’s regional defense posture.

Growing Tourism and Cultural Heritage

Romania’s appeal as a tourist destination is growing, driven by its historical cities, medieval castles, and scenic Carpathian landscapes. Sites like the iconic Bran Castle and the picturesque Transylvanian towns captivate visitors, while Romania’s dynamic cultural festivals and natural parks are attracting increasing numbers of international tourists each year. The tourism sector reflects Romania’s broader ambitions of becoming a prime travel destination within Europe.

Conclusion

Romania's dynamic economy, resilient fiscal management, and cultural richness offer promising opportunities for businesses. Market research in Romania is essential for understanding the nuances of its economic landscape, consumer preferences, and regulatory environment. With its strategic position in Eastern Europe, Romania presents significant potential for investors and businesses seeking to engage with a maturing market and a gateway to the wider European region.