Net wages in Romania up real 8.3% y/y in August

The net average wage in Romania edged down in August compared to July, but the 13.8% y/y nominal advance (+14.8% y/y in July) resulted in a still substantial 8.3% y/y real increase as the inflation kept easing, according to data published by the statistics office INS.

In absolute terms, the net average wage reached RON 5,158 (EUR 1,037) in August, 1.8% less compared to July.

In euros, the net average wage increased by 13.0% y/y – a sharp rate reflecting both the higher real wages and the strengthening of the local currency than the euro.

After the 8.6% y/y average growth in July-August, the real wages in Romania are likely to hit in Q3 a record growth rate for the post-Covid period.

The current record for the post-Covid period (+8.4% y/y) was set in Q4 last year. The growth rate eased to 6.5% y/y in Q1 this year but gained momentum to 7.5% y/y in Q2 and further to 8.6% y/y in July-August.

The new record, if reached in Q3, will stay in place for some time – as the base effects and the fiscal corrective package will predictably result in slower annual income gain during 2025.

Three consecutive quarters of rising household incomes have visibly fueled private consumption and imports. The households’ expenditure for consumption increased by 7.4% y/y (volume terms) in Q2, twice as fast as in Q1 (+3.8% y/y) and nearly three times faster than in Q4 last year (+2.9% y/y).

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