Bucharest City Review


About This Report

Dec 2017

With a 17% real GDP growth rate over 2011-2016, Bucharest was the fourth fastest growing economy in Eastern Europe. The Romanian capital has seen enormous growth in FDI which boosts local labour productivity. Nevertheless, Bucharest is tipped to become a major BPO and tech start-up hub in Europe thanks to its high-speed internet connection, recognised high-tech expertise and large talent pool.

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Bucharest City Review


Bucharest is Romania's economic powerhouse, featuring superior labour productivity (GVA per person employed) that was 187% higher than in the rest of the country in 2016. The city is an attractive destination for foreign capital inflows in Eastern Europe, which boosts the efficiency of its workforce.

Higher labour productivity raises household disposable income

Reaping the benefits of higher labour productivity, disposable income per household in Bucharest exceeded the rest of the country's average by 42% in 2016. The income gap with other regions of Romania is dampened by a sizeable part of Bucharest's economic output being recuperated by multinational companies as profits.

Lower proportion of expenditure spent on necessities

Due to higher disposable income, consumer expenditure (excluding housing and transport) per household was 26% higher in Bucharest compared with the rest of the country in 2016. Bucharest's households allocate a lower share of their total expenditure to necessity items, such as food and non-alcoholic drinks compared to other parts of Romania.

Higher housing costs

The income premium in the capital (+42% in 2016) does not cover additional city-specific expenses. In 2016, combined household expenditure on housing and transport was 44% higher in the city than in the rest of the country. The difference is principally driven by pricier housing in Bucharest.

Bucharest City Review


Understanding Bucharest Review structure
Chart 1 Overview
Key facts on Bucharest
Summary 1 Key Facts On Bucharest 2011, 2016, 2021


Delimitation of the metropolitan region
Chart 2 Map Of Bucharest Metropolitan Area
Main business districts


Industrial make-up
Chart 3 Industrial Composition Of Bucharest 2016
Chart 4 Labour Productivity: Selected Cities 2016
Recent developments and outlook
Chart 5 Dynamics Of Real GDP In Bucharest, Romania And Other Cities In Eastern Europe, 2011-2021
Summary 2 Labour Market Changes In Bucharest 2011, 2016


City demographics
Chart 6 Population By Age 2016
Chart 7 Drivers Of Population Growth In Bucharest 2011-2016
Household income
Chart 8 Household Distribution By Income In Bucharest 2016 And 2021


Structure of household budget
Chart 9 Comparison Of Household Expenditure In Bucharest And Romania, 2016
Summary 3 Bucharest Household Budget Structure By Consumer Expenditure Item, % of total, 2011, 2016, 2021
City lifestyle
Growing Medical Tourism In Bucharest
Digital Literacy: A Challenge To Go
City affordability
Chart 10 Household Expenditure On Housing: Selected Cities 2016
Chart 11 Household Expenditure On Transport: Selected Cities 2016



Summary 4 GDP Development, 2011, 2016, 2021
Summary 5 GDP By Origin, Current Prices, US$, Million, 2011-2016
Summary 6 Population And Labour Force, 2011-2016
Summary 7 Employed Population By Economic Sector, % of total, 2011-2016
Summary 8 Population By Sex And Broad Age Groups, ‘000, 2011-2016
Summary 9 Population Growth, 2011-2016
Summary 10 Forecast Population Growth
Summary 11 Population By Educational Attainment, 2011-2016
Summary 12 Structure Of Consumer Expenditure By Main Category, 2011-2016
Summary 13 Consumer Expenditure By Main Category, Per Household, Constant (2016) Prices, US$, 2011, 2016, 2021
Summary 14 Households By Income Band, % Of Total, Constant (2016) Prices 2011, 2016, 2021
Summary 15 Households By Income Band, ‘000, Current Prices 2011-2016
Summary 16 Inflation, 2011-2016
Summary 17 Transport Indicators, 2011-2016
Summary 18 Air Pollution, Concentration In Micrograms Per Cubic Metre, 2011-2016
Summary 19 Possession of Consumer Durables, % of Households, 2011, 2016, 2021