BCG: Romanians' wealth rises by 9% in 2020

The financial wealth of Romanians increased last year by 9% compared to 2019, in comparable terms, a faster rate than in Western Europe (4%), but slower compared to the rest of Eastern Europe (including the Baltic States and Russia) - where the average was 12%, according to a report by the Boston Consulting Group (BCG).

The report shows a "less polarised" distribution of wealth, which might seem counter-intuitive - but the comparison is versus Eastern Europe.

At the same time, BCG finds that Romanians do not keep that much of their wealth in equity (stocks) and have increased their placements in life insurance and pension funds - statements that, in the absence of the complete set of data, provide little insights.

"In Romania, the concentration of welfare shows a less polarized society than in other parts of Eastern Europe. A strong segment of people, with less than USD 250,000, represents 58% of the total financial wealth," said Nimrod Pais, CEO and partner of BCG, Ziarul Financiar reported.

"At the same time, the share [of wealth] of those with a net worth of over USD 100 million is higher than globally: 16% compared to 13%, but this rate is only half the average of 32% in Eastern Europe," added Pais.

The report shows that the allocation of Romanian assets features a strong increase of the segments of life insurance and pensions, and the segment of equity investments is much thinner than globally or in other parts of Eastern Europe.

The segment of cash and deposits is well below the Eastern European average but remains at the global average, which reflects a slightly more advanced savings market than Romania's neighbours in Eastern Europe, Pais said. Or maybe fewer financial instruments to park the wealth, compared to some peers in the region.

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