economic history
- 2
The return of collectivised farmland to its cultivators, one of the first initiatives of the post-December 1989
revolution government, resulted in a short-term decrease in agricultural production. Some four million small parcels
representing 80% of the arable surface were returned to original owners or their heirs. Many of the recipients were
elderly or city dwellers, and the slow progress of granting formal land titles was an obstacle to leasing or selling
land to active farmers.
An acute shortage of foreign exchange and a poorly developed financial sector were also obstacles to rapid economic
transition. Outside factors such as the collapse of trade with Soviet bloc trading partners, economic slowdown in
the industrialised West, increases in imported energy costs, and large losses from United Nations sanctions against
Iraq and the former Socialist Federal Republic of Yugoslavia, contributed to a precipitous drop in industrial output
after 1989.
Subsidies on most basic consumer goods were lifted in May 1993, but support for under productive and loss-making state-owned
industries continued to be a serious drain on the budget. The government nonetheless managed to cut the deficit, which totaled
almost 4% of GDP in 1992, to only 1.7% in 1993. By 1995, however, the budget deficit had again risen to about 4% of GDP. The
consolidated deficit, including internal arrears, climbed to more than 10% of GDP in 1996.
Previous |
1 | 2
| 3 |
Next
Information & Links
romania news
romania news
romania news rss feed
romania news
romania news rss feed
romania news
romania news rss feed
romania news
romania news rss feed
romania news
romania news rss feed
romania news
romania news rss feed
Romania property news
Romania property news
Romania property news
Romania property investment
Romania property investment news property romania
property romania
property romania
property romania
property romania
property romania
property romania
property romania
property romania
property romania
property romania
property romania
property romania
property romania
property romania
property romania
property romania
property romania
property romania
property romania
property romania
property for sale bucharest
property for sale bucharest
property for sale bucharest
property for sale bucharest
romania property investment
romania property investment
romania property investment
romania property investment
romania property investment
Property Romania
Property Romania
Property Romania
Property
Romania
Property
Romania
Property Romania
Property Romania
Property Romania
Property
Investment Romania
Property
Investment Romania
Property
investment Romania
Bucharest property
Off plan property
Romania
Off plan property
Romania
Property for sale Romania