The early stages of the transformation process in Romania were described in the 1993 OECD Economic Assessment. The first transitional shock – a close to 30 per cent fall in GDP, one of the deepest amongst Central and Eastern European countries – was analysed and the gradualist policy adopted to manage the transition discussed. A more comprehensive approach to reforms was advocated in the Assessment, as macroeconomic stabilisation policy seemed doomed to fail without a better co-ordination with structural reforms. Indeed, during 1993-96 Romania experienced a volatile economic environment characterised by positive growth, but high inflation and growing macroeconomic imbalances.