Bloomberg: EU's fastest growth rate masks deepest level of deprivation

Romania has the highest social deprivation in the European Union, despite being EU’s fastest-growing economy, Bloomberg points out. “One in two Romanians cited problems including an inability to keep their homes warm or afford a meal with meat or fish every other day, according to a Eurostat report this week (Eurostat: Half of Romania’s population suffers from material and social deprivation). That’s more than three times the EU average,” reads the Bloomberg article. This is in contrast with the macroeconomic data, which shows that Romania’s economy grew 8.8% in the third quarter, the most in almost a decade. “Despite Bulgaria being the bloc’s poorest country in terms of gross domestic product per capita, Romania fared worse than its neighbor in the annual deprivation survey,” Blomberg writes. The article also points out that Romania won’t have an easy job in narrowing the wealth gap to the richer countries in Western Europe, given the low level of public investments, low EU funds absorption, and uncertainties in the business sector due to changes in taxation. “All these will weigh on potential growth and will prevent a faster convergence in living standards,” Dan Bucsa, a London-based economist at UniCredit Bank, told Bloomberg. It’s not the first time Romania makes the international press headlines in a negative way this year. A few months ago, the New York Times dedicated a front-page article to unveiling the truth behind Romania’s growth story. editor@romania-insider.com