Consumption on the rise in Romania
The latest statistics show that Romanians are consuming more and are increasingly interested in buying apartment and new cars
Daniela Budu, 07.08.2024, 14:00
In June 2024, Romania recorded the highest increase in retail sales in the European Union, of 10.2%, compared to June 2023. According to Eurostat data, the volume of retail trade increased by 0.1% among the member states, compared to the same month last year. Romania is followed by Luxembourg (+7.9%) and Croatia (+5.4%). At the opposite pole, the most significant decreases were registered in Belgium, Estonia and Austria.
According to an analysis by the Romanian Commercial Bank, in June, consumer confidence reached its highest level in the last three years. It fell in July, but still remained above average. Consumer loans continue to grow at a double-digit rate, stimulated by the reduction of interest rates for new loans and the relaxation of lending standards amid competition between banks. Buyers’ interest in new homes exploded in Bucharest, Cluj-Napoca (north-west) and Iaşi (east), with 18,000 such properties being put up for sale in Romania’s big cities.
A report drawn up by a specialized website shows that, in one year, prices have risen here by up to 17% and may soon reach new record levels. Thus, new apartments and houses are attracting more and more buyers in the country’s big cities, experts say, although prices are clearly increasing. However, less is being built, which has a direct impact on the offer that Romanians have at their disposal. Experts in the field are of the opinion that the downward trend of interest rates will maintain a high demand on the real estate market, against the background of a continuously decreasing offer. And this will obviously generate, say the specialists, new increases in house prices.
It should also be noted that official data show that the number of new car registrations in Romania increased in the first half of this year, compared to last year. Romanians continue to choose SUVs, to the detriment of compact models or sedans. In this field, however, there is also a decrease – that of Romanians’ interest in electric vehicles, and this is happening, analysts say, also due to the lack of an infrastructure of charging stations.
Finally, the latest report of the Association of Automobile Manufacturers and Importers shows that Romania is on the rise both in the production and sales of automobiles, but also in the auto components industry. In the first six months of the year, 82,505 new cars were registered across the country, an increase of more than 12 percent compared to the same period last year. And for the entire year 2023, official data show that over 140 thousand new vehicles were registered in Romania. So, if the pace is maintained, this year the figure will be exceeded. As for the production of automobiles at the two largest automobile factories in Romania, Automobile Dacia Mioveni and Ford Craiova (south), specialists hope to go, this year, above the figure of 500,000 manufactured automobiles. Taking into account these developments, the forecast of the European Commission shows that Romania’s economy will grow by more than 3% in 2024 and 2025, supported by private consumption, and inflation will continue to slow down gradually. (MI)
