Labour cost: steepest and largest increase in the EU. And mostly concentrated on non-business sector

Romania recorded in the first quarter of 2018 the highest labour cost increase among all EU member states, according to data released by Eurostat. With… Mai mult

Company financing: Firms’ aversion to credit – at high levels. Most favourite banking product – account overdraft

The rise in interest rates and fees is becoming increasingly worrying for companies and maintains companies’ aversion to banking lending at high levels, according to… Mai mult

“Everything in One Hand” project continues: Law which pushes Court of Auditors beneath Administration’s feet – adopted

The Senate adopted on Thursday the draft amending Law 94/1992 on the organization and functioning of the Court of Auditors, which contains amendments that could… Mai mult

Government is hardly competing with private economy on banks’ money. Which are satisfied: less work, lower risks

  The volume of government credit has increased about 10 times over the last 10 years, and the share in total banking investment in Romania… Mai mult

Romania’s public debt – Level and evolution

Government debt service for 2019 will surely exceed the 2018 level, according to the projection made by the Ministry of Finance based on the debt… 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


Fitch confirms Romania's rating at BBB- but warns: fiscal loosening is risky for macroeconomic stability

Fitch Ratings confirmed on Friday Romania's rating for long-term foreign and local currency debt at BBB-, with a stable outlook, but warned that fiscal loosening… Mai mult

"We are working on a tax amnesty mechanism": announcement made by Minister of Finance

Finance Minister Eugen Teodorovici said at a press conference held in Bistrita that "a mechanism of this type is in progress”, a mechanism on tax… Mai mult

AOAR - Economy against new Criminal Code: businessmen denounce excessive protection provided to officials who cause damages to economy

The Businessmen’s Association of Romania (AOAR) asks the ruling coalition to explain the mechanism by which, after changes introduced on Wednesday in the Criminal Code,… Mai mult

Number of insolvencies increased by 12% in first five months. Suspended activities - plus 31%, dissolutions - plus 59%

The increase in the number of companies and PFAs in insolvency was 11.97% in the first five months of this year, compared to the same… Mai mult

Transport infrastructure in Romania needs EUR 70 billion - double as compared to existing resources

The investment needs in Romania's transport infrastructure exceed EUR 70 billion, while the available resources by 2030 are EUR 36 billion, according to the Transport… Mai mult

Refusal to work annuls entitlement to social assistance - bill voted in Chamber of Deputies

Deputies adopted a draft law on Wednesday whereby entitlement to social assistance ceases when a job is refused. The decision, Agerpres announced, was taken with… Mai mult

Subsidy of RON 900/month for employing a graduate based on contracts of indefinite duration

The National Agency for Employment (ANOFM) grants subsidies of RON 900/month to employers who employ graduates of educational institutions, with contracts of indefinite duration, within… Mai mult

C.P. Tariceanu, before the heads of Senates from EU: The European Commission has encouraged the parallel state, in Romania it is like in the 50's

Calin Popescu Tariceanu (foto) delivered a very tough speech on Friday, in the Senate, addressed to the European Commission, which he accused of encouraging the… Mai mult

National Bank of Romania wants to lower indebtedness limit in granting loans to individuals

The National Bank of Romania (BNR) sent to banks for consultation a draft amending Regulation 17/2012, which provides for a consistent lowering of the indebtedness… Mai mult

High impact provisions: Senate has adopted PSD-ALDE amendments to the Code of Criminal Procedure

Senators adopted on Wednesday the draft for amending the Code of Criminal Procedure, by 74 votes for to 28, against. The bill goes to the… Mai mult

RBL: Workforce crisis is worse than economic crisis - 3.4 million Romanians have left the country in last 10 years

Migration is one of the most serious problems facing Romania at this time, along with the lack of infrastructure. However, the return of Romanians to… Mai mult

World Bank: Romania's economy could grow by 5.1% in 2018

Romania's economy could grow by 5.1% in 2018, according to the World Bank summer forecast. The estimate has been improved by 0.6 percentage points above… Mai mult

Ministry of Energy: Natural gas from Black Sea will be exported through Onesti - Isaccea - Negru Voda network

The Ministry of Energy issued for Transgaz the construction permit for the consolidation of the transport system between Onesti (Bacau) and Isaccea (Tulcea) and for… Mai mult