Romania’s April net wages herald end of high-growth period
<p>Romania’s average net wage, which has posted annual growth rates for nearly two years, advanced by only 3.5% y/y in CFI deflated terms - the lowest growth rate since April 2023, according to data published by the statistics office INS. In nominal terms, the annual advance was 9.9% – the second-lowest growth rate since 2021.&nbsp;</p>

<p>In absolute terms, the average net wage in Romania reached RON 5,198 (EUR 1,135) in April.</p>

<p>Over the past three years to April 2025, the average net wage in Romania rose by 15.5% in real terms and by 41% y/y in euros. This represents average annual growth rates of 4.9% and 12.2%, respectively. The steeper advance of the wages, when expressed in euros, reflects the real appreciation of the local currency against the euro (high inflation, steady exchange rate).&nbsp;</p>

<p>The visible slowdown seen in April’s wage numbers will likely continue through the year amid adverse economic conditions and possibly higher inflation if the VAT rate hike is enforced as a part of the fiscal consolidation plan.</p>

<p>Under any design of the fiscal plan, the households’ incomes are likely to deteriorate in real terms.</p>

<p>Under its May 14 Spring Forecast, the state forecasting body CNP predicted a 1.3% y/y real advance of net wages in Romania this year, after +8.3% y/y in 2024. CNP also expects private consumption to ease down to +2.7% y/y this year from +6.0% y/y in 2024.</p>

<p>(Photo: <a href="https://www.dreamstime.com/" rel="noopener" target="_blank">Lupoian Flaviu/ Dreamstime</a>)</p>

<p><em>iulian@romania-insider.com</em></p>