Net wages in Romania up real 8.3% y/y in August
<p>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.</p>

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

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

<p>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.&nbsp;</p>

<p>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.&nbsp;</p>

<p>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.</p>

<p>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).</p>

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

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