GDP, Inflation and Labor cost in Romania

The GDP in Romania and EU

The GDP per capita in Romania has exceeded in 2018 the barrier of abt. 19.000 euro/capita, representing 60% from the mean GDP of the European Union.
Unfortunately, between the different regions of Romania are large discrepancies. Whereas the eastern part of Romania (Moldova) has the smallest GDP per capita, the most developed regions of Romania, such as the area of the Bucharest (Ilfov) and the western area (Cluj/ Timsoara/ Alba/ Bihor) have a GDP per capita of about 27.000 euro, representing 85% from the GDP of EU.
If the GDP/buying power parity is taken into account, then the capital of Romania, Bucharest, has a GDB/buying power which is larger than the same KPI (key performance indicator) of the cities of Lisbon and Berlin.
The growth rate of the GDP (the economic growth) was of abt. 5% in the years 2015 and 2016 and in the last closed year 2017, has reached a maximum of 7%, Romania being among the world champions for economic growth in 2017.
The private consumption and the industrial growth have equilibrated almost equally contributed to the increase rate of the GDP, fact which is again proving, that the GDP of Romania has a healthy growth.

Inflation and public debt in Romania

After a considerable time period of reduced inflation in 2013 and 2014, the inflation turned negative, and the corresponding rate of deflation was of (-0.7%) in the 2015. The inflation was held during 2016 and 2017 within reasonable limits (of abt. 1.5/2.5%)
During 2018 the inflation rate became of abt. 5% and this tendency seems to maintain also for the near future.
The public debt is abt. 40% from GDP, percentage which places Romania on a honorable position among the European countries.

The labor cost in Romania and EU

According to Eurostat, the labor cost per hour in the EU for the year 2017 was of 26.8 euro. The value of the same indicator for Romania, which is also a measure of the competitiveness of Romanian economy is of 6.3 euro/hour.
This performance indicator is manifesting a growth general tendency, for both: EU and Romania, the increasing rate being obviously different.
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