Economic Context
Romania is a market with tremendous potential, a strategic location, and a business environment that offers opportunities amidst some risks. Reducing those risks and realizing the opportunities require patience and a careful sifting of market information. Romania has been a member of the European Union (EU) since 2007. After several years of strong growth, Romania slumped into a deep recession in 2009 with GDP contracting by more than 7%. The contraction moderated in 2010 to minus 2% of GDP, and most forecasts, including those of the International Monetary Fund (IMF) see a gradual return to growth of 1.5% by the end of 2011. Stabilization of the economy has been due largely to a €20 billion ($27.4 billion) rescue package led by the International Monetary Fund (IMF). Romania has shown commitment to meeting the terms of the agreement with IMF, implementing a tough austerity program to reduce its budget deficit to 4.4% of GDP in 2011 and to 3% of GDP in 2012
Primary energy resources
Romania has a lower energy dependency on outside sources than the European Union average due to its own primary energy resources. The country has the largest oil and natural gas reserves in Central and Eastern Europe. At the end of 2009, the following proven reserves were estimated (source: Europe’s Energy Portal) for Romania:
• Oil: 0.5 billions of barrels
• Natural Gas: 0.6 trillion cubic meters
• Coal: 398 million tons
