The Romanian economy falters halfway through the …

Years: 1977 - 1977

The Romanian economy falters halfway through the Sixth Five-Year Plan (1976-80).

All manpower reserves have been tapped; shortages of consumer goods have sapped worker enthusiasm; and low labor productivity has dulled the effectiveness of relatively modern industrial facilities.

After decades of growth, oil output has begun to decline; the downturn forces Romania to import oil at prices too high to allow its huge new petrochemical plants to operate profitably.

Coal, electricity, and natural-gas production also fall short of plan targets, creating chaos throughout the economy.

A devastating earthquake (March 4, 1977), drought, higher world interest rates, soft foreign demand for Romanian goods, and higher prices for petroleum imports have pushed Romania into a balance-of-payments crisis.

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