Bloomberg: despite Romania’s fastest-growing economy, citizens are not becoming richer

Anca Alexe 15/01/2018 | 11:22

An analysis by Bloomberg shows that while the Romanian GDP has grown at the fastest rate in the European Union, the wealth level of citizens has not changed since five years ago. The country’s wealth is calculated as citizens’ net assets as a share of disposable income.

According to the feature, Romanians tend to spend their money on essentials like food or clothes, and people who have money left over use it for holidays or gadgets rather than investments in long-term assets such as real estate.

Experts warn that although there is currently a boom in the Romanian economy, people should not see it as something permanent and limit their indebtedness, as it is most likely not sustainable – “a correction is inevitable” says Florian Libocor, economist at BRD.

Bloomberg points out that the economy already shows signs of a slow-down, as inflation has increased significantly and the central bank has already begun to raise interest rates.