Romania’s per-capita GDP calculated for PP exchange rates, namely the exchange rates that make the average prices equal across countries, reached 76% of the EU average in 2022 – 3 percentage points (pp) higher compared to 2021.

Romania is thus gaining some ground versus Poland (79% of EU average, only 2pp up y/y) and is at par with Hungary, which improved its score by only 1pp since 2021, according to Eurostat data. 

Romania, as well as Poland, stands out by its relatively high value of actual individual consumption per capita (AIC), which was 86% of the EU average in 2022 (up from 83% in 2021). Hungary, in turn, uses a smaller share of its GDP for consumption. Its per-capita AIC was only 71% of the EU average, while Poland boasted an 87% ratio. 

On average, AIC in EU27 accounted for 66% of the GDP (per capita), while Romanians used for consumption a much higher share – 75% in 2022. The ratio calculated for Hungary was 61%, while for Poland was 72%.

A smaller consumption share means more is left for investments. Low-income countries tend to feature higher consumption ratios.

(Photo: Designer491/ Dreamstime)

iulian@romania-insider.com