World Grain - June 2014 - 24

COUNTRY FOCUS

Focus on
Romania

Its role as a major grain exporter in the
Black Sea FINLAND may increase due to
region
Russia-Ukraine conflict
by Chris Lyddon

Romania, a member of the E.U. since 2007, has maintained
ESTONIA
a role as a grain exporter, competing with its neighbors on the
Black Sea. Its location and relatively largeRUSSIA
size among European
countries make it special.
LATVIA
According to the International Grains Council (IGC), Romania'sLITHUANIA
total grains production in 2014-15 will be 17.2 million
tonnes, down from 19.6 million the year before. The ﬁgure includes 6.8 million tonnes of wheat, down from 7.2 million, and
8.6 million tonnes of maize, down from 10.4 million. Predicted
POLAND
BELARUS
barley production is 1.2 million tonnes, down from 1.4 million.
The E.U. grain trade body, COCERAL, forecasts Romania's
rapeseed production at 648,000 tonnes in 2014, down from
715,000 tonnes in 2013. It puts sunﬂowerseed production at 1.54
million tonnes, down from 2 million the year before. It also predicts that Romania will produce
SLOVAKIA
91,000 tonnes of soybeans, down
UKRAINE
from 126,000 tonnes in 2013.
HUNGARY
COCEREAL forecasts Romania's 2014 soft wheat production
ROMANIA
ROATIA
at 6.986 million tonnes, down
BOSNIA
from 7.995 million the year beand
fore. It puts the countries durum
YUGOSLAVIA
HERZ.
production at an unchanged 10,000
BULGARIA
tonnes. COCEREAL projects 2014
barley production at 1.06 million
MACEDONIA
tonnes, down from 1.383 million, while maize producALBANIA
GREECE
tion is put at 8.84 million tonnes in 2014, down from
TURKEY
10.257 million the year before.
It has been suggested that Romania might be well
placed to beneﬁt from the turmoil in Ukraine. ThenFarm Minister Daniel Botanoiu was quoted early this year by the
national news agency Agerpress as saying, "the Russia-Ukraine
conﬂict could give Romania the opportunity to SYRIA a major
become
player on the grains market in the Black Sea Basin given that
24

Key Facts
Capital: Bucharest
Population: 21,729,871 (July 2014 est.)
Religions: Eastern Orthodox (including all subdenominations) 81.9%, Protestant (various denominations
including Reformed and Pentecostal) 6.4%, Roman Catholic
4.3%, other (includes Muslim) 0.9%, none or atheist 0.2%,
unspecified 6.3% (2011 est.).
Location: Southeastern Europe, bordering the Black Sea,
between Bulgaria and Ukraine.
Government: Republic. Chief of state: President Traian
Basescu (since Dec. 20, 20014); head of government: Prime
Minister Victor-Viorel Ponta (since May 7, 2012).
Economy: Romania, which joined the E.U. on Jan. 1, 2007,
began the transition from Communism in 1989 with a largely
obsolete industrial base and a pattern of output unsuited
to the country's needs. The country emerged in 2000 from
a punishing three-year recession due to strong demand in
E.U. export markets. Domestic consumption and investment
fueled strong GDP growth, but led to large current account
imbalances. Romania's macroeconomic gains have only
recently started to spur creation of a middle class and to
address Romania's widespread poverty. Corruption and red
tape continue to permeate the business environment. As a
result of the global financial crisis, Romania signed on to
a $26 billion emergency assistance package from the IMF,
the E.U., and other international lenders. GDP contracted
from 2009 to 2011. In March 2011, Romania and the IMF/
EU/World Bank signed a 24-month precautionary stand-by
agreement, worth $6.6 billion, to promote fiscal discipline,
encourage progress on structural reforms, and strengthen
financial sector stability. In September 2013, the Romanian
authorities and the IMF/EU agreed to a follow-on stand-by
agreement, worth $5.4 billion, to continue with reforms,
although Bucharest announced that it does not intend
to draw funds under the agreement. Economic growth
accelerated in 2013, driven by strong industrial exports
and an excellent agricultural harvest. In December 2013,
inflation dropped to a historical low annual rate of 1.6%,
and the current account deficit was reduced substantially.
Yet, progress on structural reforms is uneven and the
economy still is vulnerable to shocks.
GDP per capita: $14,400 (2013 est.); inflation: 3.2%
(2013 est.); unemployment: 7.3% (2013 est.).
Currency: Lei (RON): 3.227 lei equals 1 U.S. dollar (May
22, 2014).
Exports: $65.84 billion (2013 est.): machinery and
equipment, metals and metal products, textiles and footwear,
chemicals, agricultural products, minerals and fuels.
Imports: $73.42 billion (2013 est.): machinery and
equipment, chemicals, fuels and minerals, metals, textile and
products, agricultural products.
Major crops/agricultural products: Wheat, corn, barley,
sugar beets, sunflower seed, potatoes, grapes; eggs, sheep.
Agriculture: 6.4% of GDP and 29% of the labor force
Internet: Code: .ro; 2.667 million (2012) hosts and 7.787
million (2009) users.
Source: CIA World Factbook

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