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Income and Expenditure: Romania

October 2021

Private consumption in Romania is projected to increase over 2021-2040, driven by an expansionary fiscal policy after the COVID-19 pandemic, rising disposable incomes and increased employment opportunities. However, high levels of migration and a severe skills gap are set to hinder consumer market expansion. Moreover, income inequality is forecast to remain among the highest regionally, resulting from the growing gender wage gap, underdeveloped rural areas, and elevated poverty levels.

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The Country Briefings series examine market potential, economic and consumer trends impacting each country and how they are set to change.

Each Country Briefing covers one of these topics:

Economy, Finance and Trade: Understanding the structure, health and potential risks of an economy are important for decision-making within an existing operating environment as well as for expansion strategies. Real GDP growth, inflation and exchange rate fluctuations will directly impact consumer market potential. Import and export trade profiles help gauge how open an economy is to trade and investment, while analysis of government finances can be used to explore macroeconomic stability and susceptibility to economic shocks.

Income and Expenditure: Insights into income, wealth and expenditure of consumers are vital in helping businesses make strategic decisions with regards to which country (or even which region within a country) to enter, which consumer segment to target, which products or services to market, and at which price point. Other factors such as the size and expansion of the middle class and income inequality are also important in helping companies gauge the potential of a country market.

Households: Global shifts in gender, ageing, migration and housing are transforming the size, location,  general make-up as well as income and expenditure of households around the globe, with diverse implications for governments and companies. Households insights can help identify the decision-making processes and consumption tastes of different household groups and types within a country, and assess household appliance and digital readiness that is key for formulating market technology and internet strategies.

Business Dynamics: A stable and competitive business environment is vital to operate efficiently and attract inward investment. Businesses can assess these factors alongside challenges such as corruption, political instability and terrorism, also gain insight into business operating environment and make strategic investment decisions. Transport infrastructure, ICT readiness and labour force dynamics will also identify potential issues with a supply chain and the level of workforce skills.

Sustainability: Insights on key sectors directly related to the environmental sustainability of a country such as energy, water, pollution, environmental resilience, forest and biodiversity and food and agriculture help businesses to make strategic decisions in relation to environmental and sustainability trends, improve brand reputation and ensure long-term operations while ultimately growing the bottom line.

The briefings cover 103 countries and identify topics of crucial interest to planners, marketers and researchers.

Income and Expenditure: Romania



Economy to pick up quickly, contributing to rising income levels
Income inequality is projected to increase, as huge differences remain between rural and urban regions
Consumer expenditure is predicted to grow, but essential spending will dominate budgets
The number of wealthy people in Romania to remain small
Chart 1 Annual Gross Income Distribution by Age in Romania 2020 Chart 2 Distribution of Income in Romania: Key Metrics 2020-2040 Chart 3 Gross Income Growth Index in Romania 2020-2040 Chart 4 Average Gross Income by Age in Romania 2020-2040 Chart 5 Population by Income Bracket in 2040 Chart 6 Gini Index 2020/2040 Chart 7 Households by Disposable Income (PPP) over 2020-2040 Chart 8 Overview of Romania’s Social Classes Chart 9 Social Class D by Age 2020/2040 Chart 10 Consumer Market and Spending in Romania: Key Metrics 2040 Chart 11 Consumer Expenditure in Top Regions: Size in 2040 and Growth over 2015-2040 Chart 12 Urban/Rural Consumer Expenditure in 2040 Chart 13 Household Expenditure in 2020 Chart 14 Consumer Spending by Category in Romania 2020-2040: USD per Household Chart 15 Index of Consumer Prices in Romania over 2010-2020 Chart 16 Household Expenditure by Category in Romania 2040 Chart 17 Romania’s Wealth Landscape 2020-2030

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