Romania is the second largest market in east-central Europe after Poland, with a population of 21.7 million emerging consumers.The country has one of the fastest growing economies in Europe.For the first half 2006, year-to-year growth was 7.4%.Unemployment in Romania was at 5.0% in September 2006, which is very low compared to other middle-sized or large European countries.Foreign debt is also comparatively low, at 20.3% of GDP.
Exports have increased substantially in the past few years, with a 24.8% year-on-year rise in exports in the first quarter of 2006.Romania's main exports are clothing and textiles, industrial machinery, electrical and electronic equipment, metallurgic products, raw materials, cars, military equipment, software, pharmaceuticals, fine chemicals, and agricultural products (fruits, vegetables, and flowers).Trade is mostly centered on the member states of the European Union, with Germany and Italy being the country's single largest trading partners.The country, however, maintains a large trade deficit, as it imports 37% more goods than it exports.
After a series of privatizations and reforms in the late 1990s and early 2000s, government intervention in the Romanian economy is somewhat lower than in other European economies.In 2005, the government replaced Romania's progressive tax system with a flat tax of 16% for both personal income and corporate profit, resulting in the country having one of the lowest fiscal burdens in Europe, a factor which has contributed to the growth of the private sector.The economy is predominantly based on services, which account for 54.9% of GDP, even though industry and agriculture also have significant contributions, making up 35.0% and 10.1% of GDP, respectively.Additionally, 31.6% of the Romanian population is employed in agriculture and primary production, one of the highest rates in Europe.
Since 2000, Romania has attracted increasing amounts of foreign investment, becoming the single largest investment destination in Southeastern and Central Europe.Foreign direct investment was valued at $6.3 billion in 2005.According to a 2006 World Book report, Romania is currently ranked 49th out of 175 economies in the ease of doing business, scoring higher than other countries in the region such as Hungary, Poland and the Czech Republic.Additionally, the same study judged it to be the world's second-fastest economic reformer in 2006.The average gross wage per month in Romania, as of November 2006, equates to approximately $500.