Flag description: three equal vertical bands of blue (hoist side), yellow, and red; the national coat of arms that used to be centered in the yellow band has been removed; now similar to the flags of Andorra and Chad
Economy
Economy—overview: After the collapse of the Soviet Bloc in 1989-91, Romania was left with an obsolete industrial base and a pattern of industrial capacity wholly unsuited to its needs. In February 1997, Romania embarked on a comprehensive macroeconomic stabilization and structural reform program, but reform subsequently has been a stop-and-go process. Restructuring programs include liquidating large energy-intensive industries and major agricultural and financial sector reforms. Today, Romania is continuing its difficult transition to a market-based economy. GDP contracted by an estimated 7.3% in 1998 after a 6.6% decline in 1997. Tight monetary policy and slower exchange rate depreciation earlier in 1998 helped lower inflation to an estimated 41% from 152% in 1997. The large current account deficit and concerns about meeting debt payments in 1999 contributed to increased pressure on the exchange rate towards the end of 1998. Replacing the IMF standby agreement (suspended because of lack of progress on structural reforms), servicing large debt payments, and bringing the budget under control are key priorities for 1999.
GDP: purchasing power parity—$90.6 billion (1998 est.)
GDP—real growth rate: -7.3% (1998 est.)
GDP—per capita: purchasing power parity?$4,050 (1998 est.)
GDP—composition by sector: agriculture: 19% industry: 41% services: 40% (1997)
Population below poverty line: 21.5% (1994 est.)
Household income or consumption by percentage share: lowest 10%: 3.8% highest 10%: 20.2% (1992)
Inflation rate (consumer prices): 41% (1998 est.)