Majority of Romanians believe economic situation will worsen, EY survey shows
Around 67% of Romanians believe that the economic situation will worsen, 7% higher than the previous year, according to the EY Consumer Index Romania 2024. Findings suggest a challenging start of 2025 both economically and politically in Romania.
Additionally, in 2024, more than half of respondents (59%) were extremely concerned about conflicts and external wars.
"Expectations regarding tax increases, rising inflation, a budget deficit exceeding the limits accepted by the European Union, and the constant rise in prices of basic products contribute to an increasingly worrying climate. All these aspects, combined with the tension specific to an electoral year, help explain the heightened pessimism felt by Romanians," said Georgiana Iancu, Partner, coordinator of the Indirect Taxes practice, and leader of the Retail and Consumer Products sector at EY Romania, cited by Ziarul Financiar.
More than half of respondents (56%) are concerned about the rising costs of electricity, gas, and water. Access to quality healthcare (54%) and the ability to find a job (52%) are also significant concerns.
Furthermore, 48% of respondents are worried about rising taxes and food costs, while 40% believe they will not be able to buy a house in the near future. The majority of young people aged 18–30 are most worried about not being able to purchase a home without financial help.
Surprisingly, 81% of young people aged 18–24 are extremely concerned about the outcome of political elections, and 83% are worried about the rising cost of living. Regarding the evolution of the national economy, 68% of respondents aged 51–65 are concerned about its future.
"In 2024, Romanians' pessimism deepened, both regarding their personal financial situation and the national economy. While in 2023, the main concern was related to the rise in prices and the cost of living due to inflation, in 2024, 70% of respondents are concerned about the results of political elections, which are considered crucial for Romania's economy. Other major concerns include the rising cost of living (68%) and the state of the economy (61%)," Iancu added.
In 2024, Romanians are paying more attention to avoiding food waste, with the percentage of those adopting this behavior increasing significantly from 80% last year to 89%. Additionally, 61% of respondents feel no need to keep up with the latest fashion trends, and 58% prefer repairing items instead of replacing them. When it comes to brands, 39% of respondents believe that brands are not very important in their purchasing decisions.
Categories targeted for reduced spending include fashion accessories (68%), consumer electronics (59%), and toys or gadgets (58%). In contrast, clothing, footwear, and beauty/cosmetic products are less targeted for savings.
Compared to last year, more respondents intend to adopt a more cautious approach to consumption and reduce expenses. However, in some areas, consumer estimates show that this may not be possible due to anticipated cost increases, particularly for energy (57%), fresh food (38%), and clothing/footwear (23%). Moreover, respondents foresee higher spending on vacations and holidays (41%), recreational activities (27%), and gifts or charitable donations (26%).
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