Romania

Franchise Association:
ROMANIAN FRANCHISE ASSOCIATION
Address: Aleea Tincani nr.4A, Bl.824,sc.3,ap.89,sector 6,zip code 061599
Bucuresti - Romania
Tel:0040726731020
www.francizor.ro
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Constantin Anton,President of ROMANIAN FRANCHISE ASSOCIATION

Background:
The principalities of Wallachia and Moldavia - for centuries under the suzerainty of the Turkish Ottoman Empire - secured their autonomy in 1856; they united in 1859 and a few years later adopted the new name of Romania. The country gained recognition of its independence in 1878. It joined the Allied Powers in World War I and acquired new territories - most notably Transylvania - following the conflict. In 1940, Romania allied with the Axis powers and participated in the 1941 German invasion of the USSR. Three years later, overrun by the Soviets, Romania signed an armistice. The post-war Soviet occupation led to the formation of a Communist "people's republic" in 1947 and the abdication of the king. The decades-long rule of dictator Nicolae CEAUSESCU, who took power in 1965, and his Securitate police state became increasingly oppressive and draconian through the 1980s. CEAUSESCU was overthrown and executed in late 1989. Former Communists dominated the government until 1996 when they were swept from power. Romania joined NATO in 2004 and the EU in 2007.

Geography:
Area: 237,499 sq. km. (91,699 sq. mi.); somewhat smaller than New York and Pennsylvania combined.
Cities: Capital--Bucharest (pop. 2.02 million). Other cities--Iasi (350,000), Constanta (344,000), Timisoara (327,000), Cluj-Napoca (334,000), Galati (331,000), Brasov (316,000).

People:
Nationality: Noun and adjective--Romanian(s).
Population (December 2007): 21.55 million.
Annual population growth rate: -0.3%.
Ethnic groups: Romanians 89%, Hungarians 7.1%, Germans 0.5%, Ukrainians, Serbs, Croats, Russians, Turks, and Roma 2.5%.
Religions: Orthodox 86.8%, Roman Catholic 5%, Reformed Protestant, Baptist, and Pentecostal 5%, Greek Catholic (Uniate) 1 to 3%, Muslim 0.2%, Jewish less than 0.1%.
Languages: Romanian (official). Other languages--Hungarian, German.
Education: Years compulsory--10. Attendance--98%. Literacy--98%.
Health: Infant mortality rate--19/1,000 (2005); 18/1,000 (2006). Life expectancy--men 67.61 yrs., women 74.9 yrs.
Work force (June 2007): 9.4 million. Agriculture--3.0 million, industry and construction--2.8 million, services--3.3 million, other--0.3 million.

Economy:
GDP (2007): $165.0 billion. $278.4 billion (2008 est.)
Annual GDP growth rate (2006): +7.7%; +5.8% (Jan.-June 2007). 8% (2008 est.)  
GDP per capita (2007): $7,697. $12,500 (2008 est.)
Natural resources: Oil, timber, natural gas, coal, salt, iron ore.
Agriculture (2007): Percent of GDP--10.0%. Products--corn, wheat, potatoes, oilseeds, vegetables, livestock, fish, and forestry.
Industry (2007): Percent of GDP--37.0%. Types--machine building, mining, construction materials, metal production and processing, chemicals, food processing, textiles, clothing. Industrial output increased by 7.1% in 2006 and 6.1% in Jan.-June 2007.
Services (2007): Percent of GDP--56.0%.
Construction (2007): Percent of GDP--7.0%.
Trade: Exports (2007)--$40.3 billion. Types--textiles, chemicals, light manufactures, wood products, fuels, processed metals, machinery and equipment. Exports to the U.S. (2007)--$1.06 billion; (Jan.-October 2008): $1.0 billion. Major markets--Italy, Germany, France, Turkey, Hungary. Imports (2007)--$69.9 billion; (Jan.-October 2008): $31.3 billion. Types--machinery and equipment, textiles, fuel, coking coal, iron ore, machinery and equipment, and mineral products. Imports from the U.S. (2007)--$650 million; (Jan.-October 2008): $941.5 million. Major suppliers--Germany, Italy, Hungary, Russia, France.
Exchange rate: 3.384 new Lei=U.S.$1 (end-February 2009).


Romania, which joined the European Union on 1 January 2007, began the transition from Communism in 1989 with a largely obsolete industrial base and a pattern of output unsuited to the country's needs. The country emerged in 2000 from a punishing three-year recession thanks to strong demand in EU export markets. Domestic consumption and investment have fueled strong GDP growth in recent years, but have led to large current account imbalances. Romania's macroeconomic gains have only recently started to spur creation of a middle class and address Romania's widespread poverty. Corruption and red tape continue to handicap its business environment. Inflation rose in 2007-08, driven in part by strong consumer demand and high wage growth, rising energy costs, a nation-wide drought affecting food prices, and a relaxation of fiscal discipline. Romania's strong GDP growth moderated markedly in the last quarter of 2008 as the country began to feel the effects of a global downturn in financial markets and trade, and growth is expected to be much weaker in 2009. Romania hopes to adopt the euro by 2014.