BR Analysis. Average Romanian household earns EUR 893, spends EUR 765 per month mainly on food and taxes

An average household in Romania earned RON 4,151 (EUR 893) per month in the second quarter of this year, up 25 percent compared with Q2 2017, and spent RON 3,558 (EUR 765) – increasing by 27 percent year-on-year – mainly on consumer products and taxes, according to a report of the National Institute of Statistics (INS).

According to the report, 92.6 percent of total income of a Romanian household are cash, mainly from wages (67.5 percent) and pensions or other social benefits (18.4 percent), while 7.4 percent of income are in-kind income.

A Romanian household includes 2.6 persons on average, and a member of a household earned RON 1,589 (EUR 342) per month in Q2 2018, on average.

Each household spent in the second quarter RON 3,558 – or RON 1,362 per person – each month mainly on consumer products (61.4 percent) and taxes and contributions (32.3 percent).

Of the consumer products, Romanians spent their money mainly on food and beverages (35.2 percent of total consumer spending), household expenses like electricity, water or heating (14.4 percent), cigarettes and alcohol (8.6 percent) and clothing and footwear (7.4 percent).

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Improved living standards

Official data show that Romania’s households have gradually improved their standard of living during the last couple of years, as their income increased and unemployment declined, but there is still a major difference compared to the Western quality of life.

A recent report released by the National Institute of Statistics (INS) show that, in 2017, 33.7 percent of Romania’s households owned a personal car, 39.1 percent – a bicycle, 48.7 percent – connection to the internet, 52 percent – a computer, 56 percent – a modern refrigerator, 76.2 percent – an automatic washing machine, and 97.8 percent – cooking stoves.

In 2016, 30.5 percent of Romania-s households owned a personal car, 35.4 percent – a bicycle, 45.9 percent – connection to the internet, 49.9 percent – a computer, 53.4 percent – a modern refrigerator, 72.5 percent – an automatic washing machine, and 97.1 percent – cooking stoves.

Romania’s households are well equipped with colour TV (158.6 per 100 households in 2017) and mobile phones (183.5 per 100 households), official data show.

Households located in Bucharest-Ilfov, Transylvania and Banat are better equipped with cars and electronics than those living in poorer regions (Moldova and Wallachia).

According to Eurostat, 15 percent of Romanian households didn’t afford a computer and 29.6 percent didn’t afford a personal car in 2017, the highest rates among the 28 European Union member states.

A recent official study shows that there is a direct link between Romanians’ education level and household income.

Romanian households where the top earner is a university graduate have earned as much as RON 5,374 (EUR 1,176) per month last year, on average, compared with RON 2,949 (EUR 645) for the households where the top earner have secondary education and only RON 1,452 (EUR 318) for the households where the head has only primary education.