Romania – consumption versus income
Population consumption exceeds income, says a report of the National Bank of Romania.
Roxana Vasile, 12.12.2025, 13:50
For more than a decade, Romanians have kept the economy moving through consumption. There have been many accusations against the government that accepts such a situation, instead of encouraging, for example, exports or investments. However, data from the National Institute of Statistics (INS) for the month of October this year indicate a major change: retail trade has decreased, both compared to the previous month and last year. It is the first statistical confirmation of the fact that the “star” of economic growth – consumption – has lost its strength, also against the backdrop of the entry into force, in the summer of 2025, of drastic austerity measures aimed at reducing the country’s abysmal deficit.
According to the INS, the volume of retail turnover (excluding motor vehicles and motorcycles) decreased in October by 1.1% compared to September and by 4% compared to October 2024. The decrease is generalized: foods, non-foods, fuels… And, according to specialists, this means that Romanians have reduced basic purchases, either by postponing them, or by changing the consumer basket or by focusing on lower prices and cheaper products. The online publication Hotnews notes that, for years, Romanian consumers have been the “unsung heroes” of the economy. Now, these “heroes” need a break and, in the absence of a strong impulse from industry or from services with high added value, the economy will remain vulnerable.
The National Bank of Romania confirms what statisticians have said. In a Stability Report published on Tuesday, the national bank states that, at present, Romanians’ consumption exceeds their income, the surplus being financed either from previously accumulated savings or through credit, as a result of the fiscal measures adopted, but also against the backdrop of high inflation and the modest evolution of economic activity. But it is not only people who consume more than they earn, the state does the same.
According to the INS, Romania’s trade deficit continued to grow this year and reached almost 28 billion Euros, approximately 276 million Euros higher than last year. Exports increased by 4.3%, but imports also increased by 3.4% compared to last year. Analysts point out that, on the one hand, many of the imports are for production or feed Romanian exports, but, on the other hand, there are also sectors in which Romania registers chronic deficits, such as the chemical products area or the food industry, where measures should be taken so that domestic production should cover a larger part of consumption. (LS)
