Economy

From 1948 until 1989, Romania had a Soviet-style command economy in which nearly all agricultural and industrial enterprises were state controlled. During those years, it built an economy based largely on heavy industry. Romania remains one of the poorest European countries. Industry contributes over half of the country's gross national product (GNP) and accounts for one third of the labor force. Major manufactures include steel products, machinery, transport vehicles, and chemicals. The country's main industrial centers are Arad, Bucharest, Braşov, Hunedoara, Iaşi, Oradea, Reşiţa, and Timişoara. Brăila, Galaţi, and Giurgiu are the main Danubian ports; Constanţa is the chief Black Sea port. Galaţi and Constanţa are resort cities in Romania's growing tourism industry, and Bucharest is known as the “Paris of the East.”

Romania has an inadequate supply of mineral resources and must import raw materials and fuels, although historically it has been an important oil-producing center. About 25% of the country is forested, and large quantities of timber are cut, especially in Transylvania. Agriculture employs about 27% of the labor force and accounts for 15% of the GNP. Chief crops are corn, sugar beets, potatoes, and various grains.

The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2007, Columbia University Press. All rights reserved.

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