Romania profile

Demography and Health

Romania sits at roughly 19.07 million people in 2024, placing it around the mid-range of population size within its region. The country faces demographic aging, reinforced by a birth rate of about 8.0 births per 1,000 people (2023) and a death rate of 12.7 per 1,000 (2023), contributing to an elevated reliance ratio and potential long‑term pressures on pension systems and healthcare demand. Life expectancy at birth is 76.6 years (2023), signaling a solid but not leading health outcome by European standards. Under-5 mortality stands at 6.6 per 1,000 live births (2023), indicating progress in child health yet leaving room for improvement relative to higher‑income comparators. Net migration data show a small outflow in 2024 (approximately -28,466), implying a gradual shrinkage of the working-age population and potential impacts on labor supply and long-term demographic structure. The country has a high internet penetration, with 89.2% of the population online in 2023, which supports digital health initiatives, telemedicine, and health information access. On health resources, physicians per 1,000 people are 3.47 (2021), reflecting a reasonable but improvable density of medical professionals in the context of a relatively large population. Health expenditure patterns reveal current health expenditure at 5.75% of GDP (2022), with domestic government health expenditure per capita (PPP) around 1,920 international US$ (2022), suggesting a modest public health investment footprint to complement private and familial care. Overall, Romania’s health indicators reflect a transitioning health system shaped by demographic shifts, gradual modernization, and ongoing public investment challenges.

Economy, Trade and Investment

Romania’s economy demonstrates a solid income level with GDP per capita at current US$ around 20,072 in 2024, ranking mid‑tier globally, while GDP per capita at PPP stands at about 48,712 international US$, signaling a stronger relative standard of living when measured against purchasing power. The country maintains a trade‑exposed growth model: exports of goods and services reached 35.6% of GDP in 2024 and imports 41.7% of GDP, underscoring substantial integration into regional and global value chains. High‑technology exports are meaningful, totaling roughly 9.72 billion US$ in 2023, indicating a productive R&D‑driven segment contributing to the export mix. Inflation sits at 5.72% in 2024, suggesting moderate price growth that can influence monetary policy and consumer purchasing power. The unemployment rate is 5.59% in 2023, pointing to a functioning labor market with some slack for cyclical fluctuations. Poverty at national poverty lines stands at 21.1% in 2022, highlighting ongoing social challenges alongside improving macro fundamentals. Undernourishment affects about 2.5% of the population (2022), indicating basic food security for most but with pockets of vulnerability. Foreign direct investment net inflows amount to 1.92% of GDP in 2024, signaling continued investment interest but with potential for acceleration. The current account balance is negative at 8.36% of GDP in 2024, reflecting financing needs tied to a trade and capital flow dynamic. Renewable energy accounts for 23.6% of total final energy consumption (2021), illustrating progress toward cleaner energy but leaving room for further decarbonization and energy security improvements. Overall, the economy blends growth from openness and modernization with structural challenges in inclusivity, external financing, and macro stability.

Governance and Institutions

Romania exhibits mid‑range governance performance across several core indicators. Political stability and absence of violence/terrorism score 0.374 (2023), indicating a degree of political risk consistent with many transitional economies. Regulatory quality stands at 0.319 (2023), while the Rule of Law is at 0.437 (2023), suggesting a fragile but functioning legal framework with notable room for strengthening institutions and enforcement. Control of corruption is relatively weak at 0.0405 (2023), and Government Effectiveness registers at −0.0927 (2023), pointing to governance challenges in delivering public services and implementing reforms. Taken together, these indicators imply that while Romania maintains democratic structures and regulatory systems, it confronts perceptions and realities of policy implementation gaps, anticorruption efforts, and institutional capacity that can influence the business environment, investment climate, and long‑term governance outcomes. A credible path forward would emphasize judicial reforms, administrative modernization, and transparent policy processes to bolster investor confidence and social trust.

Infrastructure and Technology

Romania benefits from high digital connectivity and a growing innovation footprint. Individuals using the Internet reach 89.2% of the population (2023), reflecting widespread digital literacy and potential for e‑government, online services, and digital commerce. The country is actively producing high‑tech goods for international markets, with high‑technology exports totaling about 9.72 billion US$ (2023), underscoring a measurable specialization in advanced sectors. Research and development intensity stands at 0.459% of GDP (2022), indicating that private and public investment in science and technology remains modest relative to advanced economies, with room for acceleration to sustain productivity gains. Patent activity among residents reached 772 applications (2021), signaling ongoing innovation but with scope to broaden the patent base to strengthen global competitiveness. The logistics environment shows a relatively strong performance in trade and transport infrastructure, with a Logistics Performance Index (Quality of trade and transport-related infrastructure) of 2.9 (2022) on a 1–5 scale, and a rank of 17, suggesting Romania benefits from effective logistical capacities compared with many peers. Renewable energy’s share of total final energy consumption sits at 23.6% (2021), illustrating a transition toward cleaner energy sources alongside ongoing energy security considerations. The health‑and‑tech nexus is supported by a physician density of 3.47 per 1,000 people (2021) and a per‑capita PPP health expenditure footprint of 1,920 international US$ (2022), reflecting both access to medical care and opportunities to leverage technology for service delivery. Overall, infrastructure and technology indicate a country with growing digitalization, innovation potential, and trade‑facilitating capabilities, tempered by continued need for investment in R&D and modernization of physical infrastructure.

Environment and Sustainability

Romania’s environmental context includes a meaningful role for renewable energy and notable pressures on natural resources. Renewable energy accounts for 23.6% of total final energy consumption (2021), signaling progress toward a more sustainable energy mix but leaving substantial room for further decarbonization and energy security improvements. Total greenhouse gas emissions per capita, excluding LULUCF, amount to 5.55 t CO2e per person (2023), placing Romania in a middle position among European economies in terms of carbon intensity, with potential for further reductions through energy efficiency and financeable decarbonization pathways. Freshwater resources face modest stress, with water withdrawal as a share of available freshwater resources at 7.36% (2021), indicating manageable but important water resource management considerations for agriculture, industry, and households. The prevalence of undernourishment remains low at 2.5% (2022), suggesting adequate caloric availability for the vast majority of the population, though persistent nutrition and access disparities can undermine broader sustainability goals. In parallel, the country’s poverty rate at national poverty lines sits at 21.1% (2022), underscoring the connection between environmental pressures, social equity, and resilience. Taken together, Romania’s environmental trajectory points to ongoing transition opportunities—especially in expanding renewable capacity, improving energy efficiency, and strengthening resource governance—to meet climate targets and social well‑being objectives.