Two-thousand-and-seven was a challenging year for Romanian economy, the country's central bank notes in its latest Annual Report.

The report states that in the first half of the year Romania's recent European Union membership and capital-account liberalisation fostered sizeable capital inflows and strengthened the domestic currency, but adds that the second half brought several challenges such as capital flight induced by the subprime financial crisis, and a surge in food and oil prices.

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