Romania Economic Forecast

In January of 2007, Romania became a member of the European Union. At that time, the process of changing from a communist country based primarily on an industrial base and product of things that did not suit Romania to a new country with incredible opportunity. Over the past few years, domestic consumption, as well as investments boosted this country’s economy, helping improve the Gross Domestic Product or GDP. However, this also caused imbalances for the national current account balance.

In January of 2007, Romania became a member of the European Union. At that time, the process of changing from a communist country based primarily on an industrial base and product of things that did not suit Romania to a new country with incredible opportunity. Over the past few years, domestic consumption, as well as investments boosted this country’s economy, helping improve the Gross Domestic Product or GDP. However, this also caused imbalances for the national current account balance.

One of the challenges Romania has had for a long time is a high level of poverty. The economic gains being experienced have been able to address this, along with corruption and red tape issues that have hampered the country’s business environment. The country also faced issues during 2007 to 2008 specific to drought that affected food costs, high consumer demand and wage increase, and rising energy costs that cause inflation to rise. While Romania still feels some of the effects of the global financial crisis, once the Euro is adopted in 2014 and with ongoing efforts of the government, it is expected the economy will become stronger.

Romania GDP Forecast

For future numbers associated with the Romania GDP (Gross Domestic Product, Current Prices, US Dollars), experts use exchange rate projections along with GDP in national currency. By 2008, the GDP was at $204.32 billion, reported in US dollars. For the next year, a 20.95% decline was seen, which left 2009 at $161.521 billion. With that, Romania was put at number 47 for world rankings. Now, for the future, experts forecast 2010’s GDP to be at $168.64 billion, a small increase from 2009 but when looking at numbers for 2015, a greater change is anticipated pushing the GDP to $288.232 billion.

Romania Unemployment Forecast

According to the latest reported numbers, the Romania population is at close to 21.5 million. Although the Romania unemployment rate of 7.8% is among the lowest in the European Union, consider this took a jump from 4.4% just one year earlier many officials are concerned. This means that currently, some 710,000 people are without work. To combat the problem before it gets out of hand, government officials are looking at a number of potential solutions.

Romania Inflation Rate Forecast

With the Romania inflation rate in 2008 of 7.85%, we can see that a 28.61 reduction occurred during the following 12 months that put the 2009 numbers at 5.603%. With the 2009 numbers for the country’s inflation, it was ranked at number 57 worldwide. Using the same formula consisting of data for averages for the year rather than end-of-period, forecasters have been able to put numbers for 2010 at 3.97%, a moderate decline of 29.11% from the prior year. Forecasters also look further out to 2015, at which time they believe the inflation rate will be at 3.039%.

Romania Current Account Balance Forecast

The Romania current account balance is another part of the economy that forecasters look at to determine the health of the country’s economy. For this, major classifications of goods, services, income, and current transfers are used. In 2008, the current account balance was minus $24.95 billion in US dollars, followed by 2009 closing at minus $7.104 billion, a 71.53 reduction from the prior year. For 2010, predictions are the current account balance for Romania will close at a negative $15.983 billion, also in US dollars.