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North-East Region - E conomic P resentation

North-East Region - E conomic P resentation. ROMANIA – GENERAL INFORMATION. Location: - in south-eastern Europe; Surface : 238,391 square km; Population : 21, 623, 000 inhabitants;

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North-East Region - E conomic P resentation

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  1. North-East Region - EconomicPresentation

  2. ROMANIA – GENERAL INFORMATION Location: - in south-eastern Europe; Surface : 238,391 square km; Population : 21, 623, 000 inhabitants; (89.5% Romanians, 6.6% Hungarians, 2.5 Rromapeople, 0.3% Germans, 0,3% Ukrainians, 0.2% Turkish, 0.6% other nationalities) Capital : Bucharest (aprox. 2 000 000 inhabitants) Official language: Romanian Currency : RON (Romanian leu) Official hour: GMT +2 Religion: 86.6% orthodoxism, 4.7% roman-catholicism, 3.2% protestants, 5.3% other religions

  3. Romania is a parliamentary republic. From 1st of January 2007, Romania had become member state of European Union and of Economic European Area. From the administrative point of view, Romania is divided into 41 counties and the Municipality of Bucharest. For economical considerations and statistical reasons Romania is divided into 8 specific regions: the North East Region, the South East Region, the South Muntenia Region, the South West Oltenia Region, the West Region, the North West Region, the Center Region and the Bucharest and Ilfov Region.

  4. European Cohesion Policy in Romania Funds allocated to Romania for the 2007-2013 period: • Convergence Objective: 19,2 billion € • European Territorial Cooperation Objective: 455 million € Main priorities of Cohesion Policy in Romania: • Improving basic transport infrastructure and accessibility - €5.3 billion • Contribute to research and innovation to ensure long-term sustainable economic competitiveness - €2.6 billion • The social inclusion of disadvantaged groups will be supported to the tune of some €1.2 billion for education and training • Nearly €570 million will be invested in supporting business, with a focus on SMEs Results: • Funds may help increase GDP by 15% in the period 2007–13 • Help safeguard around 200 000 jobs

  5. Labour market informations Active population: 9.9 million By area: urban : 5.4 million rural : 4.5 million Civil employment population: 9.3 million By area: urban : 5 million rural : 4.3 million

  6. Economical activities: agriculture 42.7 % services 33.7 % industry and constructions 23.6 % Shortages: textile operator , sale person, bricklayer, carpenter Surpluses: farm-hand • The Eastern Land of Legends NORTH EAST REGION

  7. Location • Location: within North-East side of Romania • Neighbors: a. Ukraine (North) b. Republic of Moldova (East) c. South-East Region Romania (South) d. Regions Center and North-West (West) • Surface: 36,850 sq.km (15.6% of total Romanian’s surface) • Population: 3,732,683 inhabitants (17.30% of total Romanian’s population, of which 56.3% living in rural areas)

  8. Regional economy • The North - East development region is the most underdeveloped region in Romania (in2010 the GDP/capita was 72.3% of the national average). The high poverty areacomprises the South of Iasi district, the South-East of Neamţ district, the East of Bacăudistrict and the districts of Botoşani and Vaslui.

  9. Regional economy • Regional Gross Domestic Product (GDP) – Euro 9,199 million, contribution of 11.8% to Romania’s GDP • Contribution to Regional GDP: • - agriculture 12.85% • - industry 22.65 % • - services 52.80% (of which civil constructions 5.3%) • Regional GDP/inhabitant – RON 9,114 /inhabitant or Euro2,463 /inhabitant, representing 68.39% of Romania’s GDP/inhabitant

  10. Regional economy • SMEs Sector: a total of 52,154 units, approx.13.9 units/1,000 inhabitants, as average • Main productive sectors: • - civil constructions • - wood processing • - apparel manufacturing • - tourism

  11. REGIONAL ECONOMIC PROFILE • machine building industry (automobiles, tractors, airplanes, shipyards); • agriculture and agricultural products processing (cereals, industrial crops, fruit and vegetable processing); • electric and thermal power industry; • metallurgical industry - manufacturing and processing of non-ferrous metals (aluminium plant) – unique in Romania; • chemical industry; • wood processing industry; • textileindustry (is well represented in the region by factories producing clothing and leather/substitutes footwear, textiles and fabrics, etc.)

  12. Accessibility • European Corridor E 85 (Corridor 9: Helsinki – Kiev –– Bucharest – Constanta – Alexandroupolis) • International airports : Bacau and Iasi Airports • Internal flights airport:Suceava Airport

  13. 57.83% of the region’s surface is represented by agriculture-dedicated lands 33.46% of region’s surface is covered by forests The North-East Region provides 26.7% of wood production of Romania The county has a forest area of 81,500 ha. Forests have a rich hunting background - deer, doe, fox, boar. The area covered by water surface is 22,000 ha. The richness in fish of these waters was determinant, in the past. Agriculture

  14. Neamt County has an agricultural area of 437,845 ha, occupying seventh place in the national context. We emphasize: vineyards, orchards, pastures and meadows. MAIN CROPS: Wheat, rye, potatoes, sugar beet, corn, sunflower and vegetables. DOMINANT CROPS :Cereals (wheat, rye, barley and two-rowed barley, maize), oilseeds (sunflower), sugar beet, potatoes and other vegetables, watermelons and yellow melons, vines with grafted and native grapes. Wine-growing potential: villages . NEAMTCOUNTY’S AGRICULTURE

  15. 706,743 (18,9%)people under 15 years old English language or other foreign languages Taught in schools since the age of 9 Educated and qualified labourforce (of the population between 25 and 34 years old) Human resources and education 7.86% are graduates of vocational schools, 15.33% are graduates of high-schools and 10.56% are graduates of post-high schools and universities

  16. Structure of business environment 263,160jobs in56,094 companies, out of which: • 8.46% foreign capital companies • 16.7% in processing industry • 5.22% in construction sector • 75.98% in services sector

  17. Foreign direct investment

  18. The predominant industries in the Neamtcounty are: • Chemical industry. • Mechanical parts manufacturing. • Textile industry. • Food industry. • Construction materials. • In the mountains, along the • Bistrita River there is one of • the greatest dams inRomania.

  19. Tourism Neamţ county is known as the region with most monasteries per square kilometer in the world. It boasts a rich and varied landscape, with elements of great beauty, and lots of cultural and historical vestiges. The local people are renowned for their hospitality. Among such constructions, the monumental church of the Neamţ Monastery served, for more than a century, as a model for Moldavian churches and monasteries.

  20. Tourism • The main tourist attractions in the county are: • The city of Piatra Neamţ with its medieval fortifications. • The Monasteries of Northern Moldavia: • Agapia, Neamt,Văratec Monastery, Bistriţa Monastery, Pângăraţi Monastery, Secu Monastery, Sihăstria Monastery • The Neamţ Citadel • The Ceahlău National Park • The Bicaz Canyon - "CheileBicazului" • The city of Roman. • The Durău Ski Resort

  21. Surpluses of the Romanian labour force • Metal, machinery and related tradeworkers (structural metal prepares and erectors; metal wheel grinders, polishers and tool sharpeners; agricultural or industrial machinery mechanics and fitters; electrical line installers, repairers and cable jointers) • Labourers in construction, manufacturing, mining and transport (assembling labourers; farmhands and labourers; construction and maintenance labourers roads, dams and similar constructions; transport labourers and freight handlers) • Drivers and mobile plant-operators (heavy trucks and lorry drivers; car, taxi and van drivers) • Population in rural agricultural areas, situated at more than 50 km from urban areas, where there are no job offers on the labour market

  22. Conclusions: The unemployment statistical situations from the previous years show that the deficit is registered in the following sectors: • Construction • Services • Tourism • Textiles Why deficit ? • the low level of salary received (in July the average net salary on construction sector was 270 euro)  many Romanians work abroad • although the demand and the offer seems to be similar, by occupational point of view, the territorial structure of work force is unbalanced Solutions: • Increasing the salaries in Romania, gradually • Import workers from nonEU states (Moldova, Ukraine, Turkey, China) • More vocational training adapted to the Romanian labour market demand

  23. Why investing in the North-East Region? • Variety of natural resources • Young, well trained and skilled population • Relatively low labour force costs • Business infrastructure in place • Favourableinstitutional and legislative framework for business development

  24. Unemployment rate

  25. Thank you for your attention!

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