centered in the
yellow band has been removed; now similar to the flags of Andorra
and Chad

Economy
-------

Economic overview: Romania, one of the poorer East European
countries moving away from the command economy, posted its third
straight year of growth in 1995. Bucharest also was successful in
reducing its inflation rate to 25% - less than half the 1994 rate -
because of tight monetary and fiscal policies, while unemployment
fell to 9% as the private sector hired more workers. Despite these
successes on the economic front, Romania has lagged much of Central
and Eastern Europe in the restructuring process. The private sector
accounted for only 40% of GDP in 1995 with over 90% of industry
remaining in state hands. Privatization is slated to pick up in
1996, but Bucharest faces other economic problems that could stall
recovery, including a growing budget deficit, limited reform of the
agricultural and energy sectors, and accumulated decay of the
infrastructure.

GDP: purchasing power parity - $105.7 billion (1995 est.)

GDP real growth rate: 5.4% (1995 est.)

GDP per capita: $4,600 (1995 est.)

GDP composition by sector:
agriculture: 19.6%
industry: 36.3%
services: 44.1% (1994)

Inflation rate (consumer prices): 25% (1995)

Labor force: 11.3 million (1992)
by occupation: industry 38%, agriculture 28%, other 34% (1989)

Unemployment rate: 8.9% (December 1995)

Budget:
revenues: $5.35 billion
expenditures: $6.6 billion, including capital expenditures of $NA
(1995 est.)

Industries: mining, timber, construction materials, metallurgy,
chemicals, machine building, food processing, petroleum production
and refining

Industrial production growth rate: 3.3% (1994 est.)

Electricity:
capacity: 22,180,000 kW
production: 50.8 billion kWh
consumption per capita: 2,076 kWh (1993)

Agriculture: wheat, corn, sugar beets, sunflower seed, potatoes,
grapes; milk, eggs, meat

Illicit drugs: transshipment point for Southwest Asian heroin and
Latin American cocaine transiting the Balkan route

Exports: $6.2 billion (f.o.b., 1994)
commodities: textiles and footwear 23.8%, metals and metal products
17.3%, fuels and mineral products 11.6%, machinery and transport
equipment 14.8%, chemicals 7.9%, food and agricultural goods 6.5%,
other 18.1% (1994)
partners: developing countries 30.3%, East and Central Europe 8.4%,
Russia 3.4%, OECD 57.9