The volume of retail trade in Romania increased by 15% in November 2015 compared to the same month of 2014. It was the largest annual increase recorded among EU member states, according to the European Union’s statistical office Eurostat.

In the EU, the volume of retail trade rose by 2.6% year-on-year.

The retail trade index went above the level touched in 2008, before the financial crisis, when it had reached all-time highs. The retail sales fell sharply in 2009, which was a recession year. They continued to decline in 2010, as the VAT increased from 19% to 24% and the salaries of public employees were cut off by 25%, and only returned to an upward trend in the summer of 2013.

Growth accelerated in 2015 due to the VAT cut on food from 24% to 9%. The retail trade grew by 2.6% in November compared to the previous month.

The general VAT rate cut from 24% to 20% on January 1, 2016, may continue to fuel the growth in consumption.

editor@romania-insider.com