Pharma Report RomaniaEssay Preview: Pharma Report RomaniaReport this essay© WPM, World Pharmaceutical Markets, 2005Espicom Business Intelligence, Lincoln House, City Fields Business Park, City Fields Way,Chichester, West Sussex, PO20 2FS, United Kingdom.Tel: +44 (0)1243 533322. Fax: +44 (0)1243 533418.Outlook:RomaniaJanuary 2005This page left intentionally blankWPM OUTLOOK ROMANIAWPM Outlook © espicom BUSINESS INTELLIGENCEJanuary 2005 iContentsROMANIA WPM OUTLOOKWPM Outlook © espicom BUSINESS INTELLIGENCEii January 2005List of TablesList of FiguresWPM OUTLOOK ROMANIAWPM Outlook © espicom BUSINESS INTELLIGENCEJanuary 2005 1EXECUTIVE SUMMARY* Romania is located in south-eastern Europe, bordering Hungary, Ukraine, Moldova,Bulgaria and Serbia. In 2002, the total population of 21,794,793 made it one of the largest
**Somewhere over 90% of people now live in this country, and some of them are very wealthy, many of them owning many companies and homes. Romania is ranked in a national security score of 93 out of 130 (out of 176 on the World Bank’s ‘Citizen of the Year’ scale).* Romania’s GDP grew at an average rate of 0.6% between 1990 and 2000. Romanian national incomes rose 1% between 1990 and 2000, and they fell 1% on an absolute basis between 2000-2010.* Romania’s GDP is expected to increase by 0.8% over the next five years in the current situation, so this is very different to the long-term goal of growth of a country with an “average” income of $22.5 billion annually. This is the highest level of growth that the World Bank has ever recognized (in 2012 there were only 7.7% of world GDP), as it grew for an average of 1.2% (and this is the lowest rate in more than 40 years). In a sense, the economic performance of Romania in 2005 came to an end because it had become too dependent on highly paid, highly developed (primarily oil-based) industry and the poor performing education.In this regard, Romanian and other large industrial sectors performed positively in terms of output and revenue (see table). In 2005, Romanian consumer prices rose as compared to 2003, but their gross national product declined rapidly, but declined slightly later on.This shows a dramatic increase in Romanian’s overall industrial growth from 2002 onwards. Since then, gross domestic product growth has averaged approximately 5% per annum per year, relative to the EU average of 2.3%. (This has been even better in the past few years since the EU has begun to introduce a higher level of international investment in Romanian industry than in the UK.) Romania’s industrial base was expected to become stronger as it was also the main beneficiary of investments to improve and create jobs. This will not come without a price. The price of iron ore has been rising for decades, since 1995, and so have Romania’s manufacturing sector. In 2005, Romania had the world’s largest industrial development program for industrial-grade steel at $1.1 billion, which surpassed all the world’s other top-selling countries such as Australia, France and Japan.The increase made Romania by far the world’s biggest manufacturing hub to its full potential. Moreover, industrial spending was nearly triple that of the EU (in 2015, Romania spent almost $9 trillion more on industrial spending in Russia versus the EU (€5 trillion more on exports in 2016 than in 2005)).The country’s industrial development output has been increasing at a slightly faster clip than any other developed country, growing at an annualized rate of 2.2% annually or nearly twice the rate of growth in the United States over the last decade.* Romania’s economy grew at a stronger rate than the EU’s