Romania’s Economic System

Romania's economic system is a mixed economy combining market and state roles, with manufacturing, information technology, and agriculture as key sectors and a leading EU role in automobiles and software. What type of economic system does Romania have? The 2026 Index of Economic Freedom scores it 66.5 as moderately free, while Freedom House rates it 83 of 100 as Free.

Romania economy — Oil refinery (illustrative). Photo: Pexels.

What is the economic system of Romania? The economy of Romania is based on a mixed economy. The country’s economic system combines elements of a market economy and a planned economy.
Romania’s economy is diverse, with key sectors in manufacturing, information technology, and agriculture. It’s a leading EU producer of automobiles, software, and crops like wheat and corn. Additionally, the country has a strong tourist sector.

No country is purely capitalist or purely communist.

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What do the freedom indexes tell about the economic system of Romania?

For instance, according to the 2026 Index of Economic Freedom, which measures the ability of every human to control his own labor and property, Romania scored 66.5 and is ranked 58th globally and 30th in Europe, indicating that the country has a moderately free economy.

In a similar way, the 2026 Freedom House index evaluates the state of political rights and civil liberties globally. Romania gets a score of 83/100, which qualifies it as Free.

Romania is a country where the government does not control what people do for political reasons, and people have the freedom to choose (what, how much, and how to produce, whether to buy or not, selling price, etc.)

Industry and trade in Romania — Warehouse with stocked shelves (illustrative). Photo: Pexels.

The Link Between Public Sector Employment and the Economic System of Romania

An indicator of the extent to which the State is involved in the economy is the number of public sector employees. In Romania, according to ILOSTAT, the number of public sector employees as a percentage of the total workforce is 16.0% (2019).

In the country’s mixed economy, the number of public sector employees as a percentage of the total workforce varies based on the specific policies and practices adopted by the State.

Some economic activities are left to the private sector while others are under government control. The bigger the public sector the closer the economy is to being a command economy.

What do the biggest companies in Romania say about the country’s economic system?

The biggest company in Romania should also be looked at, as well as whether it is a state-owned or private company. In this case, OMV Petrom is Romania’s largest company by revenue, operating as an integrated energy producer across oil, gas, and power. The company is majority-owned by OMV (Austria) with the Romanian state holding approximately 20%, making it a mixed-ownership enterprise. In 2024, OMV Petrom reported revenues of approximately $7.8 billion (As of 2024).

The historical factors that have influenced the economic system of Romania

The mixed economy system of Romania is the result of a combination of factors, including the country’s transition from a centrally planned economy to a market-based system, the influence of foreign investment, and the adoption of free-market policies. These changes have resulted in a more open and competitive economy, with increased access to global markets and increased economic growth.