Romania’s net wages remain robust: up real 7.2% y/y in May

The average net wage in Romania increased by 12.7% y/y to RON 5,118 (EUR 1,029), according to data published by the statistics office INS.

The annual growth rate expressed in real terms eased to 7.2% y/y in May from +7.9% y/y in April but remained superior to the overall 6.5% y/y increase in Q1.

The substantial increase in real wages since the second part of last year resulted in visible advances in retail sales (and wider trade gaps as well). Thus, the retail sales accelerated to +10.1% y/y (volume terms) in April-May, from +6.4% y/y in Q1. In 2023, the retail sales volume edged up by only 1.6% y/y.

The highest wage growth rates in May were in education and warehousing (more than 20% y/y in real terms).

Strong double-digit real growth rates were in the chemical industry (+16% y/y), transport and storage (+13.3% y/y), HoReCa (+15.9% y/y), real estate activities (+12.1% y/y), and telecommunications (+10.1% y/y).

In contrast, the incomes in the insurance industry edged down by a real 1.2% y/y, although from an above-average level (to RON 8,156 in May). The wages in the sectors of water transport (RON 5,682 in May) and manufacturing of other transport equipment (not including automobiles, RON 5,057) decreased by some 5%-7% y/y.

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