The coronavirus crisis and the blockage in homes surprised more than a third (35%) of Romanians without money aside, this share being the highest in EU member states, according to a recent report by the financial group ING. This was somewhat to be expected, as – according to our national statistics – one in 10 households had, since 2019, higher expenditures than incomes. The journal also presents a regional map of the financial balance registered by households, which shows that Moldovan families remain with the lowest amounts of income after spending, and those in Bucharest – with the highest.
According to the ING report, 26% of Europeans answered “No” to the question of whether they had money saved when the coronavirus pandemic broke out. The countries with the highest shares of the population that responded negatively are: Romania (35%), Germany (29%), Italy (28%) and France (24%), and the countries with the lowest shares are: Luxembourg (8 %), The Netherlands (20%) and the Czech Republic (21%). The data presented by ING are similar to Eurostat estimates, which show that – on average – a third of the population of the European Union does not face unforeseen expenses.
What money do families have left?
The average total household expenditures were, in 2019, of 4,092 lei per month per household and 1,582.7 lei per person and represented 85.4% of the total incomes, which were 4,790 lei per month per household, respectively 1,852.7 lei per person. This happened at the level of the national average, but at the level of the regions there were significant differences, as shown by the publication “Coordinates of living standards”, published by the National Institute of Statistics (INS). According to this source, the rest of the money (the balance of the financial balance) with which a family remains ranges between 322 lei in Moldova and 1,389 lei in the Bucharest-Ilfov region. In Moldova, the money income amounts to 3,378 lei per month per household, and the expenses – 3,055 lei. On the other hand, in the Capital, the incomes are of 6,761 lei, while the expenses total 5,372 lei per household.
In the same publication, INS analyzes the financial balance of households according to 10 categories of the population (called “deciles”) divided according to their wealth. The data show that, in 2019, the poorest decile had a negative balance balance of 26 lei, in the sense that revenues were 26 lei per month lower than expenditures. In the next decile, the balance is already positive (161.8 lei of income remain after spending), and in the richest segment of the population – decile 10 – the positive balance is 1,950 lei.
To cover the expenses, a part of the households resorted to loans and credits from CAR, banks, economic agents or private persons, the INS data show.
Unemployment rose to 5.2% in May
The unemployment rate in Romania rose to 5.2% in May 2020, equaling the level of the first part of 2017, according to an INS statement. “The estimated number of unemployed people aged 15-74 for May 2020 was 463,000 people, up from the previous month (432,000) and the same month last year (352,000 people) . By gender, the unemployment rate for men exceeded by 2.1 percentage points that of women, the respective values being 6.1% in the case of males and 4% in the case of females “, announced INS. In the months before the COVID crisis, the unemployment rate was less than 4%.
The population caught without money at the beginning of the pandemic
Sursa: ING Survey / Coronavirus