Workforce crisis: Romania doubles “imports” of Asian workers

2017 was the first year when the share of foreign (third states) workers initially established – instead of 3,000 permanent workers, as estimated initially based… Mai mult

14 brave Franco-Germans relaunch the stake of the moment: six radical proposals for reforming Eurozone. “RON Romania” can meditate on solution

Given that the talks on the Eurozone reform held by the governments of France and Germany seem to get to no result, a possible solution… Mai mult

Romania loses an important indicator for accession to Eurozone. Explanation for (increased) difference between CPI and HICP

Romania recorded an annual inflation of 2.6% at the end of 2017, according to the data provided by Eurostat for all member states. We are… Mai mult

Already a (big) problem: The real negative interest rate. An evolution in deposits and loans

After entering the negative range at the mid of 2017, the remuneration of deposits at commercial banks reached a worrying -2.23% per year, according to… Mai mult

Lost opportunities: Romanian companies have not capitalized on years with low interest rates. Neither did banks. Causes

Romanian companies missed the opportunity window in recent years, of financing at low interest rates. They considered this opportunity only in the second half of… Mai mult

First signs – October 2017: Romanians bought less with more money

de Marin Pana , 18.12.2017

The gross average national wage announced by the National Institute of Statistics for October 2017 was 3,327 lei, 0.7% higher than the previous month and the corresponding net amount went up to 2,392 lei, with extra 16 lei. However, the real wage (the purchasing power of collected money) decreased by 0.6% compared to September 2017 and the index against the reference month of October 1990 decreased by one percentage point (from 178.3% to 177.3%) because of the significant increase in prices.

Net average national wage has fallen from 518 euro to 516 euro, at the average exchange rate of November 2017 (the month of effectively receiving the money) or 1,008 euro in terms of purchasing power at the EU average prices. This is the direct consequence of the biggest increase of the exchange rate this year, at an average level of 4.6314 lei/euro compared to 4.5885 lei/euro in the previous month.

The growth rate over the same month of the previous year was 13.5% in nominal terms (a significant coincidence, exactly the same level as the REAL growth in the previous month), but declined to just 10.6% in terms of EFFECTIVE PURCHASE POWER. This is the lowest value recorded in the past 22 months, although the national average net salary has increased from less than 2,000 lei to 2,400 lei.

The value is still higher than the economic growth announced for the first three quarters of 2017, but the economic foundations start to have their say and the economic theory implacably transpose into the reality. Basically, it is a signal that unless we try to voluntarily correct ourselves, in a controlled manner, the market economy will correct us.


  • Evolution of the national net average salary and purchasing power in the last 22 months
  • Month  National average net salary    Euro/RON National average net salary          Purchasing power


How increases got arranged in the national economy  

The highest percentage increases of incomes in the national economy have been recorded in some public sectors, with the mention that public administration (inevitably, there goes the lion’s share, whatever they say), has outgrown the health sector and left education far behind and even below the average of the growth rate recorded at the level of the national economy.

It can also be noticed how auxiliary activities such as trade and transport have benefited to a greater extent from the economic growth, even compared to the manufacturing sector, left behind at a level less than 90% of the average earnings in the economy. We remind and point out, this is a totally atypical situation in the EU member states (the ratio is reversed in most of them) and in a continuous deterioration.


  • Structure of wage increases by sector of activity between October 2016 and October 2017
  • Field of activity            salary in October 2016 salary in October 2017          Change
  • Public administration, defence, etc
  • Health
  • Education
  • Average level in the economy
  • Trade
  • Transport
  • Manufacturing sector
  • IT&C
  • Construction
  • Financial intermediation and insurance


It should also be noted that sectors such as the information and telecommunications (which had a remarkable contribution to this year’s economic growth rate), the construction or financial intermediation and insurance have seen wage increases much closer to the GDP growth. This confirms the effect of artificially generating wage increases, eroded by inflation and exchange rate, induced by the measures taken at the Government level.

Mergeți în homepage ›

Publicat la data de 18.12.2017

Lăsați un comentariu


Second largest bank in EU, BNP Paribas, opens its branch in Bucharest

BNP Paribas, the largest French bank and the second largest in the EU by the size of assets, will launch its retail operations in Romania… Mai mult

Three options by which BNR intends to moderate lending

The BNR will impose restrictions on credits to the population, to anticipate potential non-payment risks. This could happen in March if the project is approved… Mai mult

Siegfried Muresan: Amendments to Romanian laws on judicial will be discussed in European Parliament

The European Parliament will run debates on the situation of justice in Romania in the next plenary session, in February, in the Strasbourg plenary. The… Mai mult

State has initiated procedure for purchasing 51% of Daewoo's shares at Mangalia Shipyard

The Government approved in the last meeting a memorandum stating that the state will use its preemption right at Mangalia Shipyard and buy the 51%… Mai mult

First major acquisition in 2018 - MApN signs contract with General Dynamics to acquire 227 armoured carriers

Minister of National Defence, Mihai Fifor, participates Friday at the signing of the procurement contract for 227 Piranha V armoured carriers, a release of the… Mai mult

Business environment: Waiving governance rules in state-owned companies, another measure that deepens feeling of distrust

The Foreign Investors Council (FIC) released on Wednesday a statement that expresses its dissatisfaction with the "authorities’ political agenda" containing decisions that "will lead to… Mai mult

Bizarre government project Casa de Comert SA: name is booked since years ago at Trade Registry

Last week, the Ministry of Economy has launched to a public debate a draft government decision to establish the company Casa de Comert, which, according… Mai mult

Public Private Partnership: Government has regulated by emergency ordinance the cost cutting through "Value for Money" analysis

The Government has established the new regulations on the public-private partnership (PPP) by an emergency ordinance issued Thursday and introduced the Value for Money concept,… Mai mult

Catalin Ivan: In Romania, there are 384 companies with bearer shares, all collaborating with the state. More than EUR 40 billion transferred from Romania to offshore companies

MEP Catalin Ivan stated on Friday in Iasi that there are 384 companies with bearer shares in Romania, which gives the owners the comfort of… Mai mult

Brussels offers Romania four months to take measures to correct significant deviation of structural deficit

The European Council issued on Tuesday a new recommendation, at the request of the European Commission, based on the significant deviation procedure, with Romania being… Mai mult

Eurostat: Romania had second lowest tax to GDP ratio within EU, in 2016

In Romania, the ratio between the revenues that must be collected from taxes (including social contributions - tax/GDP ratio) and GDP was 26% in 2016,… Mai mult

9 ambassadors repeat: Venice Commission's opinion is needed to amend laws on judiciary

The nine ambassadors who met on Wednesday with Minister Tudorel Toader shared their "concern over the draft laws on the reform of the judiciary discussed… Mai mult

British Vitruvian Partners bought 30% of Bitdefender

Vitruvian Partners investment fund acquired about 30% of Bitdefender from Axxess Capital and becomes the second largest shareholder in the company, valued at over USD… Mai mult

Split VAT at the Chamber of Deputies: Dilemmas of all kinds. Thresholds for outstanding payments have increased 10 times, Budget Committee to resume debates on Monday

The Budget Committee of the Chamber of Deputies has increased ten times the threshold of the outstanding VAT obligations from which companies will automatically be… Mai mult

Competition Council: Food price increase could be caused by demand excess from budget deficit

The Competition Council started an analysis, following the request of the Ministry of Agriculture, to establish the causes of the accelerated food price increase this… Mai mult