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A WEB SITE ABOUT ROMANIA  
 
 

 


Counties and Economy

.Romania is divided into forty-one counties (judeţe), as well as the municipality of Bucharest (Bucureşti), which is its own administrative unit. Each county is administered by a county council (consiliu judeţean), responsible for local affairs, as well as a prefect, who is appointed by the central government but cannot be a member of any political party. In alphabetical order, the counties are:

Alongside the county structure, Romania is also divided into eight development regions, which correspond to NUTS-II divisions in the European Union, but which have no administrative capacity and are instead used for co-ordinating regional development projects and statistical purposes. The country is further subdivided into 2686 communes, which are rural localities, and 265 towns. Communes and towns have their own local councils and are headed by a mayor (primar). Larger and more urbanised towns gain the status of municipality, which gives them greater administrative power over local affairs.

Economy

With a GDP per capita (PPP) of $9,869 in 2006, Romania is considered an upper-middle income economy and has been part of the European Union since 1 January 2007. After the Communist regime was overthrown in late 1989, the country experienced a decade of economic instability and decline, led in part by an obsolete industrial base and a lack of structural reform. From 2000 onwards, however, the Romanian economy was transformed into one of relative macroeconomic stability, characterised by high growth, low unemployment and declining inflation. In 2006, according to the Romanian Statistics Office, GDP growth was recorded at 7.7%, one of the highest rates in Europe. Unemployment in Romania was at 4.9% in March 2007 which is very low compared to other middle-sized or large European countries such as Poland, France, Germany and Spain. Foreign debt is also comparatively low, at 20.3% of GDP. Exports have increased substantially in the past few years, with a 25% 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 centred 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 privatisations and reforms in the late 1990s and early 2000s, government intervention in the Romanian economy is somewhat lower than in other European economies.[17] In 2005, the liberal-democrat Tăriceanu 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 55% of GDP, even though industry and agriculture also have significant contributions, making up 35% and 10% of GDP, respectively. Additionally, 32% 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 €8.3 billion in 2006.According to a 2006 World Bank report, Romania currently ranks 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 is 1418 lei as of December 2006, equating to €419.38 (US$545.36) based on international exchange rates and $846.06 based on purchasing power parity

 

 

 


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