Economy

Let’s take a step back. The Romanian economy developed independently during the 1800s, with many legislative, economic, and social achievements that led to the formation of an autonomous state. Until World War II, Romania was the second-largest producer of oil and agricultural products in Europe, and Timișoara was a technological and industrial city.

During the socialist period, Romania adopted a centrally planned economy while maintaining decision-making autonomy from the Soviet Union. Between the 1950s and 1970s, there was enormous economic and industrial growth, particularly in agriculture, petrochemicals, heavy industry, and electronics. In the 1980s, dictator Ceaușescu implemented a policy of heavy austerity to repay foreign debts and complete the national oil refining chain, which negatively impacted citizens’ quality of life and ended with the 1989 revolution.

After the collapse of the Soviet Bloc in 1989-91, Romania was left with an obsolete industrial base. From 1991 onwards, the Romanian economy experienced a clear demographic collapse, and it was only in 1997 that Romania embarked on a program of economic reform and restructuring. This reform was a frustrating process that led to a recession until 1999.

Since 2001, Romania has witnessed strong economic growth, which continued until the arrival of the Great Recession. Wage increases have consistently exceeded the inflation rate, and a monetary reform introducing the new Leu (RON) became possible with falling inflation. The strengths of the Romanian economy vary across regions, with significant economic differences between urban and rural areas. Pig farms and wheat cultivation are common in the southeast, cattle farms in the central part, and fruit and vegetable cultivation in the south.

Romania has made impressive strides in raising its economic prosperity over the past two decades. However, the COVID-19 pandemic and Russia’s invasion of Ukraine have tested the resilience of the Romanian economy and exposed its structural vulnerabilities, particularly in terms of poverty, disparities in economic opportunity, and persistently large gender gaps.

Human Rights and a Picture of the Society 

Given its complex history, Romania’s ethnic diversity is no secret. The majority of the population is ethnic Romanian, but there are large minorities such as Roma and Hungarians, as well as smaller populations of Germans, Ukrainians, Turks, Russians, and Serbians. Ethnic minorities are represented in Parliament by law. Relations between Romanians and the Roma community are often difficult, leading to clashes, crime, invisibility, and marginalization.

The country does not have a state religion, but approximately 80% of the population identifies as Orthodox Christians. Regarding LGBTQ rights, Romania is generally socially conservative, but significant progress has been made in legislation since 2000.

Country’s Security

Rest assured and enjoy your trip to Romania without any fear. The country is stable, and there are no particular risks for visitors. However, it is always important to apply common sense rules to avoid mugging and robbery. In large cities like Bucharest, it is advisable to be aware of hazardous areas for visitors. The presence of drug addicts in certain parts of the city may be shocking, highlighting the need for further understanding and solutions.