Consumption trends
The new coronavirus pandemic has changed Romanian consumers' behavior who, in 2020, preferred saving rather then spending money.
Eugen Coroianu, 05.02.2021, 13:50
Last year, the consumption growth rate slowed significantly in Romania — show data made public on Thursday by the National Institute of Statistics. Experts in the field say that we are dealing with a trend that could last for several years, a trend generated by the new coronavirus pandemic. They say that the economic, social and health situation has changed the behavior of consumers, who have preferred saving to buying. The statement is also based on the findings of the National Bank of Romania regarding the increase in the populations bank deposits. Economic analyst Aurelian Dochia told Radio Romania that, in the next period, we will be witnessing a tendency of the consumption growth rate to slow down, as well as structural changes in terms of consumption behavior.
Aurelian Dochia: “Last years growth in retail trade is the smallest in recent years. We have had years when this increase was over 7%. Undoubtedly, this is related to the main events of this year: firstly, an economic contraction caused by the health crisis and, secondly, a change in consumer behavior. We know that, last year, consumers benefited from growing revenues in general, but have preferred to save a large part of this additional revenue. “
The turnover in retail trade, except for cars and motorcycles trade, increased in 2020, as a gross series, by 2.2% as compared to the previous year. This is due to the increase in non-food sales by 5.6% and in the sales of food, beverages and tobacco by 5%. Retail trading of fuels for vehicles in specialized stores dropped by 8%. The decrease in consumption shows, according to experts, the contraction of the Romanian economy – a situation experienced by the entire world as a result of the pandemic. Analyst Aurelian Dochia estimates that, in the coming years, consumption and retail trade will report a much more moderate growth than before, somewhere around 2%.
As to consumer behavior, he says it will remain cautious, and estimates that revenue increases will decrease significantly, starting in 2021, due to problems in maintaining balances, especially the budget balance. On the other hand, last year, Romania saw an increase in sales of Eco-friendly cars by over 33% as against 2019. According to the Association of Car Manufacturers and Importers, people bought mostly hybrid cars. In terms of percentages, sales “skyrocketed” as compared to the previous year for electric cars and plug-in models, but the actual number of cars sold remains modest. (tr. L. Simion)
