section_path: Economy
section_name: Economy
paragraph_text: Economy
  
  In 2024, Romania has a GDP (PPP) of around $894 billion and a GDP per capita (PPP) of $47,203. According to the World Bank, Romania is a high-income economy. According to Eurostat, Romania's GDP per capita (PPS) was 77% of the EU average (100%) in 2022, an increase from 44% in 2007 (the year of Romania's accession to the EU), making Romania one of the fastest growing economies in the EU.
  
  The Bucharest Stock Exchange (BVB) is the stock exchange of Romania, located in Bucharest. In 2024, the BVB boasted a $74 billion market capitalisation and a trading volume of $7.2 billion. As of 2024, 86 companies were listed on the exchange. In September 2020, FTSE Russell upgraded the BVB from a Frontier market to a Secondary Emerging Market.
  
  After 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 in real terms was recorded at 7.7%, one of the highest rates in Europe. However, the Great Recession forced the government to borrow externally, including an IMF €20 billion bailout programme. According to The World Bank, GDP per capita in purchasing power parity grew from $13,703 in 2007 to $47,903 in 2023.
  
  Romania's main exports are vehicles, software, clothing and textiles, industrial machinery, electrical and electronic equipment, metallurgic products, raw materials, military equipment, pharmaceuticals, fine chemicals, and agricultural products (fruits, vegetables, and flowers). Trade is mostly centred on the member states of the EU, with Germany, Italy and France being the country's single largest trading partners.
  
  In 2005, the government replaced Romania's progressive tax system with a flat tax of 16% for both personal income and corporate profit, among the lowest rates in the EU. The economy is based predominantly on services, which account for 56.2% of the country's total GDP as of 2017, with industry and agriculture accounting for 30% and 4.4% respectively. Approximately 25.8% of the Romanian workforce is employed in agriculture, one of the highest rates in Europe.
  
  Romania has attracted increasing amounts of foreign investment following the end of Communism, with the stock of foreign direct investment (FDI) in Romania rising to €83.8 billion in June 2019. Romania's FDI outward stock (an external or foreign business either investing in or purchasing the stock of a local economy) amounted to $745 million in December 2018, the lowest value among the 28 EU member states.
  
  Since 1867 the official currency has been the Romanian leu ("lion") and following a denomination in 2005. After joining the EU in 2007, Romania plans to adopt the euro in 2029.