Romanian households allocated over 60 percent of their consumption expenses to food and utilities and other 7.2 percent to alcohol and tobacco in the first quarter of this year, while in the Czech Republic, for example, just 42 percent of the consumption expenses are allocated to food and utilities, according to Daniel Catana, A.T. Kearney consultant. However, a Romanian household had a consumption budget of EUR 356 per month in the first quarter of 2011, while a Czech household had a consumption budget of EUR 855.

The Romanian households have a final consumption expenditure to GDP ratio of 63.4 percent, higher than the EU average. They are expected by the business environment to increase consumption and to drive the GDP growth, according to Daniel Catana.

The economic crisis triggered Romanians to be more careful with how they spend their personal finances, according to A.T. Kearney. The value of per capita deposits with monetary and financial institutions was EUR 1,193 in Romania in May, while in Bulgaria was with 60 percent higher, up to EUR 1,905. In the Czech Republic the value of per capita deposits stand at EUR 6,790, while in Germany was EUR 20,638 per capita. Between May 2010 and May 2011, Romanian households increased their deposits with monetary and financial institutions by EUR 5.3 per capita per month, according to Daniel Catana.

Irina Popescu, irina.popescu@romania-insider.com

(photo source: Sxc.hu)