The slow pace of structural reform, however, has exacerbated Romania's high inflation rate and eroded real wages. Agricultural production rebounded in 1993 from the drought-reduced harvest of 1992. The economy continued its recovery in 1994, further gains being realized in agriculture, construction, services, and trade.
Food supplies are adequate but expensive.
Romania's infrastructure had deteriorated over the last five years due to reduced levels of public investment. Residents of the capital reported frequent disruptions of heating and water services. The slow and painful process of conversion to a more open economy will continue in 1995.