UNTEANU; Chancery at 1607 23rd Street NW, Washington, DC
20008; telephone (202) 232-4747
US:
Ambassador John R. DAVIS; Embassy at Strada Tudor Arghezi 7-9, Bucharest
(mailing address is APO AE 09213-5260); telephone [40] (0) 10-40-40; FAX
[40] (0) 12-03-95
Flag:
three equal vertical bands of blue (hoist side), yellow, and red; the
national coat of arms that used to be centered in the yellow band has been
removed; now similar to the flags of Andorra and Chad

:Romania Economy

Overview:
Industry, which accounts for about one-third of the labor force and
generates over half the GDP, suffers from an aging capital plant and
persistent shortages of energy. The year 1991 witnessed about a 17% drop in
industrial production because of energy and input shortages and labor
unrest. In recent years the agricultural sector has had to contend with
flooding, mismanagement, shortages of inputs, and disarray caused by the
dismantling of cooperatives. A shortage of fuel and equipment in 1991
contributed to a lackluster harvest, a problem compounded by corruption and
a poor distribution system. The new government is loosening the tight
central controls of CEAUSESCU'S command economy. It has instituted moderate
land reforms, with more than one-half of cropland now in private hands, and
it has liberalized private agricultural output. Also, the new regime is
permitting the establishment of private enterprises, largely in services,
handicrafts, and small-scale industry. A law providing for the privatization
of large state firms has been passed. Most of the large state firms have
been converted into joint-stock companies, but the selling of shares and
assets to private owners has been delayed. While the government has halted
the old policy of diverting food from domestic consumption to hard currency
export markets, supplies remain scarce in some areas. Furthermore, real
wages in Romania fell about 20% in 1991, contributing to the unrest which
forced the resignation of ROMAN in September. The new government continues
to impose price ceilings on key consumer items.
GDP:
purchasing power equivalent - $71.9 billion, per capita $3,100; real growth
rate - 12% (1991 est.)
Inflation rate (consumer prices):
215% (1991 est.)
Unemployment rate:
4% (1991 est.)
Budget:
revenues $19 billion; expenditures $20 billio