Romania - Economic memorandum

Report No. 818a-RO t E Romania: Economic Memorandum December 3, 1975 Europe, Middle East and North Africa Region Not for Public Use U Document of the World Bank This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS 1. Official Rate lei 4.97 = US$1.00 lei 1.00 US$0.20 2. Official Rate With Premium Up to October 2, 1974: lei 14.38 = US$1.00 lei 1.00 = US$0.07 After October 2, 1974: lei I2.00 = US$1.00 lei 1.00 = US$0.08 Conversion Coefficient for Foreign Trade Transactions lei 20.00 = US$1.00 lei 1.00 = US$0.05 Fiscal Year -- January 1 - December 31  PREFACE This memorandum is based on the findings of an economic mission to Romania from April 28, to May 9, 1975. The mission consisted of I. Hume (chief of mission), H. Imam (economist) and B. Snoy (economist). Additional information was obtained during the discussion of the draft memorandum with Romanian officials in November, 1975.   Page 1 of 2 pages COUNTRY DATA -- ROMANIA AREA 2 POPULATION DENSITY (1974) 237,500 km 21.0 million (mid-1974) 88.5 per km2 Rate of Growth: 0.9% p.a. (from 1970 to 1974) 217 per km2 of arable land POPULATION CHARACTERISTICS (1974) HEALTH (1974) Crude Birth Rate (per 1,000) 20.3 Population per physician 630 Crude Death Rate (per 1,000) 9.1 Population per hospital bed 1,100 Infant Mortality (per 1,000 live births) 35.0 INCOME DISTRIBUTION (1974) EDUCATION (1974) % of Salaried Workers earning 1,140 to 1,300 lei 38.0 Adult literacy rate % 100 % of Salaried Workers earning more than 2,500 lei 5.2 Primary school enrollment % 100 NUTRITION (1971) Calorie intake as % of requirements 1121/ Per capita protein intake 81 GNP PER CAPITA IN 1974: US$910 GROSS NATIONAL PRODUCT IN 1974 ANNUAL RATE OF GROWTH (%, constant prices) US $ Mln. % of GNP 1961-65 1966-70 1974 GNP at Current Market Prices 19,200 100 9.0 2/ 7.7 2/ 12.5 2/ Gross Domestic Investment 6,000 31 11.3 11.2 13.3 Exports of Goods 4,874 25 9.0 3/ 10.9 3/ 30.4 3/ Imports of Goods 5,144 27 10.7 3/ 12.7 3/ 46.8 3/ EMPLOYMENT OF THE LABOR FORCE GOVERNMENT FINANCE The State Budget in 1974 4/ Labor Force 1974 Mln. % (Lei bill.) % of Nat. Income Agriculture 4.0 40 1974 1969-73 Industry 5/ 3.8 38 Other 2.3 22 Total Receipts 210.1 63.7 63.1 Total Expenditures 207.3 62.9 52.8 Total 10.1 100 Budget Surplus 2.8 0.8 2.3 1/ Using the FAO Standard Criterion 2/ Net National Income 3/ Current Prices 4/ The State finances the major part of economic investment and working capital 5/ Including construction.  Page 2 of 2 pages COUNTRY DATA -- ROMANIA PRICES: 1969 1970 1971 1972 1973 1974 (Percentages or Index Numbers) Retail Price Index (1966 = 100) 100.6 101.0 101.6 101.6 102,4 103.7 Annual Percentage Change 0.6 0.4 0.6 0.0 0.8 1,3 FOREIGN TRADE: Merchandise Imports Growth Merchandise Exports Grow-h Rate Rate 1974 1971-74 1/ 1974 1971-74 US$ mill. % (% P.a.) US$ mill. L (