Romanian economy

A snapshot of the situation in Romania

Romanian economy


The fall of communism in 1989 started a period of reform and change in Romania. After a decade of economic problems, more recent fiscal and economic reforms brought faster GDP growth and the accession to the EU promised material assistance.

Recent progress has been thrown into question. The last part of 2007 brought a series of unpleasant economic surprises, as inflation jumped to a level that was unexpected and the Leu (Romania’s currency, currency code: RON depreciated significantly against other currencies. Romania joined the EU in 2007 and is expected to adopt the Euro in 2014.

With the continuation of these trends, greater uncertainty will be the mark of events in the future. The current political framework also allows for a continuation of the easing cycle, which is likely to emphasize the unsustainable growth in an overly optimistic, superficial manner.

Flat rate taxation was introduced in 2005 and it has proven a success with increased tax revenues coming from a reduced level of evasion and the replacement of what was previously a complicated system.

Other economic analysis on Romania is listed below:

Further reading

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