fbpx

SIMILAR ARTICLES

Loss in competitiveness compared to Hungary and Poland: Real effective exchange rate – a critical indicator for Romania

Romania has improved its competitiveness compared to the Czech Republic and Bulgaria at the regional level in recent years but lost ground compared to Croatia,… Mai mult

Gas extraction from Black Sea will become unprofitable if investment starts after 2022 – ANRM estimate

If delayed long after 2022, the investment in natural gas exploitation in the Romanian commercial area of ​​the Black Sea could become unprofitable. Also, not… Mai mult

A decade of change in Romanian economy structure: Trade, public sector salaries and IT replace the loss of industry and agriculture contribution to GVA

The structure of Romania’s economy has a number of peculiarities compared to the European average in terms of the contribution brought by major sectors to… Mai mult

GDP 2020, equal to GDP 2019 in nominal terms and GDP 2018 in real terms

The National Institute of Statistics confirmed the signal result of the economic growth for 2020 at the level of -3.9%, in the first preliminary version… Mai mult

Romgaz will submit an offer to take over ExxonMobil’s stake in the Black Sea, in Neptun Deep

Romgaz (SNG) will submit an offer to take over ExxonMobil’s participation in the concession for the exploitation of natural gas from Neptun Deep perimeter in… Mai mult

Analysis: How pandemic changed the consumption and saving habits in Romania

de Alexandra Pele , 17.1.2021

The pandemic has significantly changed the consumption habits but also the saving habits of Romanians, according to the INS data analysed by cursdeguvernare.ro.

The saving rate registered a record increase in 2020 and the average of the first nine months was 16.9%, compared to 14.8% in the same period in 2019.

After reaching 18% in the second quarter, it stabilized at 16.2% in the autumn, slightly below the Eurozone average of 17.3% over the same period.

However, the data are not 100% comparable because Eurostat uses a slightly different methodology from the one used in this analysis, which was based on INS data, collected in a different manner.

Saving rate:

Although the gap between the average saving rate in Western EU countries and the one at the local level started to fade even in 2019, Romanians’ much more limited capacity to save was strongly showed in the second quarter of 2020. Then, the average of citizens’ savings in Europe’s developed countries reached almost 25%, by 6.6 percentage points above the average savings in Romania.

The difference decreased to 1.1 percentage points in the third quarter, as the European consumption woke up.

Positive results for food products, negative for clothes and recreation activities

Romanians’ savings in 2020 resulted mainly from the decrease in spending on activities restricted in the context of the health crisis: travel, recreation, restaurants, but also clothing or transportation (a consequence of teleworking). On the other hand, the pandemic also led to an increase in the share of spending on food, alcohol and tobacco, furniture, health and IT&C equipment.

*

  • Evolution of main categories of population’s expenses in 2020, compared to 2019
  • Q3 2020 compared to Q3 2019          Q2 2020 compared to Q2 2019          Q1 2020 compared to Q1 2019
  • Agri-food products      Alcoholic beverages, tobacco                        Clothing and footwear             House, water, electricity and gas       Furniture, home endowment and maintenance         Health              Transport         IT&C            Recreation, sports and culture            Education        Hotels, coffee shops and restaurants

*

As a share of total consumer spending, categories such as clothing and footwear, transport, recreation, sports and culture and hotels, coffee shops and restaurants declined during the first nine months of 2020.

On the other hand, food expenditure registered the largest increase, with a peak of 37.7% in the share of consumer spending in the second quarter of the last year. IT&C expenditures also had significant shares, of 5.9% in Q3 2020 compared to 4.7% at the beginning of 2019.

The structure of other types of expenditures, such as investments, does not seem to have been significantly affected by the pandemic, as decreases were marginal compared to 2019. As a percentage, this was at the level of the third quarter of last year, at 0.7% of household expenditures, or the equivalent of 32.7 RON per month.

In the short term, economists expect the saving rate to remain high, amid the persistent pandemic.

Andrei Radulescu, director of Macroeconomic Analysis at Banca Transilvania, foresees a decrease, once the confidence indicators will improve.

“In our scenario, population’s annual average saving rate could decrease to levels of 15% in Romania, 13.8% in the Eurozone and 9.3% in the US in 2021,” wrote Andrei Radulescu, in a note sent to investors.

Mergeți în homepage ›

Publicat la data de 17.1.2021

Lăsați un comentariu


NEWS

New Renault boss: “Dacia is a miracle. It's time for the brand to flourish"

Luca de Meo (foto), the new general manager (CEO) of Renault group, considers that Dacia project proved to be a miracle and that no one… Mai mult

Pentagon transforms Campia Turzii unit into a NATO air hub at the Black Sea

A former Soviet airbase in central Romania could become a hub for US Air Force operations in south-eastern Europe, where the Pentagon is seeking to… Mai mult

Nuclearelectrica shareholders approved to terminate negotiations with Chinese for building reactors 3 and 4 from Cernavoda

Nuclearelectrica's Board of Directors has been mandated to initiate proceedings to terminate negotiations with China General Nuclear Power Group (CGN), as well as legal effects… Mai mult

Renault holds expansion of its plant in Romania, 15,000 jobs cancelled at global level

"Putting capacity growth projects planned in Morocco and Romania on hold" - is one of the measures included in the draft plan of Renault Group… Mai mult

Romania is a net importer of electricity in 2020 as well

Romania imported an amount of electricity of almost 796 GWh in the first month of this year, by more than 36% above what it exported… Mai mult

Shareholders of Galati steel plant promise investments of one billion euros

GFG Alliance has committed to invest one billion euros to upgrade Galati steel plant in order to reduce emissions and increase production. Another EUR 1… Mai mult

Transport Ministry announces it has sent to Brussels the financing request for Sibiu - Pitesti highway

The Transport Ministry, as the Intermediate Body in Transport, approved the financing request for the project "Construction of Sibiu - Pitesti highway", Sections 1, 4… Mai mult

Romania and Juncker Plan: EUR 720 million attracted, of which 35% by Transgaz for BRUA

(The map of investment financed through Juncker Plan, by GDP share. Darker colours mean higher shares) The operator of national natural gas pipelines, Transgaz (TGN)… Mai mult

Top 3 reasons why young people leave Romania

Lack of trust in authorities, corruption and low living standards are the main reasons why young people leave Romania. The data is part of a… Mai mult

IMM Invest Romania – program implementing rules have been published

The Ministry of Public Finance announces that it has issued the methodological norms for the implementation of the Program for supporting small and medium-sized enterprises… Mai mult

Pollution import and car park expansion: comparisons with the other EU states

Romania is the EU country with the fewest cars in terms of the number of inhabitants, according to data recently published by Eurostat. We appear… Mai mult

Government is trying to save budget deficit: reductions in public administration system, cancellation of bonus for harmful conditions, excise duty on soft drinks

The Government is preparing the public for the first measures aimed at avoiding the budget slippage, which would be applied by the PSD-ALDE government. News… Mai mult

Laura Codruta Kovesi remains alone in the race for European Chief Prosecutor

French Prosecutor Jean-Francois Bohnert will be appointed as head of the European Financial Prosecutor's Office, a position for which he was heard on Thursday, 11… Mai mult

Romania - EU country with highest risk of dying in a road accident, Bulgaria is quickly decreasing number of victims since it built motorways

Romania recorded the highest road deaths in the EU also last year, with 96 deaths per one million inhabitants in 2018, almost double the EU… Mai mult

Latest developments in progress at Health Ministry: Differentiated wages based on performance, competitions organised at a regional level not by hospitals

Sorina Pintea announced on Thursday further new changes that will be brought to the functioning of the health care system, including new rules for employment… Mai mult

ANAF changes selection procedure for liquidators. Main changes

The new order on approval and selection procedures for insolvency practitioners is an important step to a very good direction, industry experts say. ANAF is… Mai mult