Search

Home

Criteria List

Page Down

Zoom In

Zoom Out

Print

COMPETITIVENESS TRENDS - OVERALL

ROMANIA
OVERALL PERFORMANCE 04 45 05 46 06 07 44 49 08 45 BASIC FACTS
Capital
2 Land area (km '000)

Rank Bucharest 238.4 (2007) 2.44 (2007) 21.54 (2007) 166.0 (2007) 11,083 (2007) 6.0 (2007) 4.8 (2007) 6.0 (2007) 10.31 (2007) -13.0 (2007) 28 39 42 21 38 24 29 52

Exchange rate (per $) Population (millions) GDP ($ billions)

CHALLENGES IN 2008
Improve the efficiency of government spending. Increase the labor supply and enhance labor market flexibility. Strengthen the public administration. Reduce corruption. Improve the efficiency of macroeconomic policy to attenuate inflationary pressures.

GDP (PPP) per capita ($) Real GDP growth (%)

Domestic Economy

Consumer Price Inflation (%) Unemployment rate (%) Labor force (millions) Current Account Balance (%) Direct Investment Stocks Inward ($ billions) Flows Inward (% of GDP)

International Trade

International Investment

Employment

Prices

Provided by : IRECSON - Romanian Institute for Economic-Social Research and Polls

Public Finance

40.7 (2006) 7.1 (2007)

44 11

Fiscal Policy

Institutional Framework

COMPETITIVENESS LANDSCAPE
ECONOMIC PERFORMANCE

Business Legislation

Societal Framework

GOVERNMENT EFFICIENCY
Finance

Productivity & Efficiency

BUSINESS EFFICIENCY

INFRASTRUCTURE

Labor Market

Management Practices

21 29 32 43 27 39 43

Attitudes and Values

Basic Infrastructure

Tech. Infrastructure

Scientific Infrastructure

41 46
Health and Environment

38 45 50

36

37 45 45 46

40

51
Education

52 Labor Market Societal Framework Productivity & Efficiency

Employment

Basic Infrastructure

Fiscal Policy

International Investment

Health and Environment

Finance

Prices

Attitudes and Values

Business Legislation

Scientific Infrastructure

Tech. Infrastructure

Domestic Economy

International Trade

Public Finance

PEER GROUP RANKINGS

EUROPE - MIDDLE EAST - AFRICA POPULATION > 20 MILLION

Institutional Framework

04 28

05 29

06

07 29

08 27

04 21

05 22

Management Practices

06

07 18 24

08 19

30

226

IMD WORLD COMPETITIVENESS YEARBOOK 2008

Education

Search

Home

Criteria List

Page Down

Page Up

Zoom In

Zoom Out

Print

COMPETITIVENESS EVOLUTION

ROMANIA
The criteria below highlight the 15 greatest Improvements and the 15 biggest Declines in the overall performance of the economy. They are determined by the largest percentage changes in the value of each criterion from one year to the next.

IMPROVEMENTS
1.3.08 4.3.19 4.2.08 1.2.10 2.5.04 2.2.13 1.1.19 4.2.07 3.5.06 3.5.07 4.2.04 1.3.03 3.4.02 3.2.21 3.3.13 Direct investment stocks inward US$ billions Intellectual property rights are adequately enforced (Survey) Computers per capita Number of computers per 1000 people / Source: Computer Industry Almanac Exports of commercial services US$ billions The risk of political instability is very low (Survey) Real corporate taxes do not discourage entrepreneurial activity (Survey) GDP per capita US$ per capita Computers in use Worldwide share / Source: Computer Industry Almanac The value system in your society supports competitiveness (Survey) Corporate values take into account the values of employees (Survey) Mobile telephone subscribers Number of subscribers per 1000 inhabitants Direct investment stocks abroad US$ billions Ethical practices are implemented in companies (Survey) International experience of senior managers is generally significant (Survey) Stock market capitalization % of GDP

WCY 2007 25.89 2.96 117 7.01 2.75 3.00 5,684 0.26 4.26 3.96 618.0 0.21 3.32 3.77 20.82

WCY 2008 40.69 4.63 175 10.30 3.94 4.15 7,706 0.36 5.75 5.26 804.5 0.28 4.28 4.85 26.73

DECLINES
2.3.14 1.3.02 2.3.15 4.1.24 2.4.14 4.4.11 2.3.10 2.4.15 1.1.13 1.3.07 4.4.20 4.4.04 1.1.14 2.4.13 2.2.07 Bureaucracy does not hinder business activity (Survey) Direct investment flows abroad % of GDP Bribing and corruption do not exist (Survey) Electricity costs for industrial clients US$ per kwh Parallel (black-market, unrecorded) economy does not impair economic development (Survey) Health problems do not have a significant impact on companies (Survey) Government decisions are effectively implemented (Survey) Regulation intensity does not restrain the ability of companies to compete (Survey) Real GDP Growth % change, based on national currency in constant prices Direct investment flows inward % of GDP Pollution problems do not seriously affect your economy (Survey) Health infrastructure meets the needs of society (Survey) Real GDP Growth per capita % change, based on national currency in constant prices Price controls do not affect pricing of products in most industries (Survey) Effective personal income tax rate % of an income equal to GDP per capita

WCY 2007 2.19 0.34 1.70 0.071 2.88 5.81 3.28 3.55 7.9 9.29 3.85 2.77 8.06 5.58 25.00

WCY 2008 0.85 0.22 1.08 0.095 1.97 4.13 2.33 2.67 6.0 7.08 2.94 2.12 6.24 4.36 30.27

IMD WORLD COMPETITIVENESS YEARBOOK 2008

227

Search

Home

Criteria List

Page Down

Page Up

Zoom In

Zoom Out

Print

COMPETITIVENESS TRENDS - FACTOR BREAKDOWN

ROMANIA

ECONOMIC PERFORMANCE
04 35 41 41 05 06 07 35 08 35 Sub-Factor Rankings :
Domestic Economy International Trade International Investment Employment Prices

2008
43 29 21 32 27

Strengths
1.3.15 1.3.17 1.3.16 1.3.07 1.2.19
Relocation of production is not a threat to the future of your economy (Survey) Relocation of services is not a threat to the future of your economy (Survey) Relocation of R&D facilities is not a threat to the future of your economy (Survey) Direct investment flows inward Percentage of GDP Terms of trade index Unit value of exports over unit value of imports (2000 = 100)

2 6 7 11 12

Weaknesses
1.3.04 1.2.02 1.3.02 1.1.18 1.2.20
Direct investment stocks abroad Percentage of GDP Current account balance Percentage of GDP Direct investment flows abroad Percentage of GDP Resilience of the economy to economic cycles is strong (Survey) Tourism receipts International tourism receipts as a percentage of GDP

53 52 51 48 47

GOVERNMENT EFFICIENCY
04 44 05 46 06 46 07 45 48 08 Sub-Factor Rankings :
Public Finance Fiscal Policy Institutional Framework Business Legislation Societal Framework

2008
39 43 51 41 46

Strengths
2.2.08 2.1.04 2.4.10 2.4.18 2.2.01
Corporate tax rate on profit Maximum tax rate, calculated on profit before tax Total general government debt Percentage of GDP State ownership of enterprises is not a threat to business activities (Survey) Start-up days Number of days to start a business Collected total tax revenues Percentage of GDP

4 9 13 18 21

Weaknesses
2.2.07 2.4.14 2.3.14 2.4.15 2.3.03
Effective personal income tax rate Percentage of an income equal to GDP per capita Parallel (black-market, unrecorded) economy does not impair economic development (Survey) Bureaucracy does not hinder business activity (Survey) Regulation intensity does not restrain the ability of companies to compete (Survey) Interest rate spread Lending rate minus deposit rate

52 52 52 51 50

228

IMD WORLD COMPETITIVENESS YEARBOOK 2008

Search

Home

Criteria List

Page Up

Zoom In

Zoom Out

Print

COMPETITIVENESS TRENDS - FACTOR BREAKDOWN

ROMANIA

BUSINESS EFFICIENCY
04 46 05 47 50 50 06 07 08 47 Sub-Factor Rankings :
Productivity & Efficiency Labor Market Finance Management Practices Attitudes and Values

2008
52 38 50 45 36

Strengths
3.2.01 3.2.03 3.2.04 3.5.03 3.2.14
Compensation levels Estimates: Total hourly compensation for manufacturing workers (wages + supplementary benefits), US$ Remuneration in services professions Gross annual income including supplements such as bonuses, in US$ Remuneration of management Total base salary plus bonuses and long-term incentives, US$ The national culture is open to foreign ideas (Survey) Female labor force Percentage of total labor force

2 8 11 16 22

Weaknesses
3.3.20 3.3.01 3.4.01 3.2.16 3.4.09
Corporate debt does not restrain the ability of enterprises to compete (Survey) Banking sector assets Percentage of GDP Adaptability of companies to market changes is high (Survey) Skilled labor is readily available (Survey) Social responsibility of business leaders is high (Survey)

55 55 54 53 53

INFRASTRUCTURE
04 43 05 45 48 06 07 42 08 43 Sub-Factor Rankings :
Basic Infrastructure Technological Infrastructure Scientific Infrastructure Health and Environment Education

2008
37 45 45 46 40

Strengths
4.1.09 4.2.01 4.3.10 4.5.17 4.5.04
Dependency ratio Population under 15 and over 64 years old, divided by active population (15 to 64 years) Investment in telecommunications Percentage of GDP Basic research does enhance long-term economic development (Survey) Language skills are meeting the needs of enterprises (Survey) Pupil-teacher ratio (secondary education) Ratio of students to teaching staff

12 14 21 24 26

Weaknesses
4.2.13 4.4.20 4.4.22 4.3.02 4.2.20
Information technology skills are readily available (Survey) Pollution problems do not seriously affect your economy (Survey) Quality of life is high (Survey) Total expenditure on R&D Percentage of GDP High-tech exports Percentage of manufactured exports

55 55 54 49 48

IMD WORLD COMPETITIVENESS YEARBOOK 2008

229