Bucharest
Regional Economic Inequalities: Romania’s GDP per Capita
Despite Romania’s dynamic growth in GDP per capita in recent years, the general perception among the population can be much more negative due to regional economic inequalities.
The economic performance of Romania’s counties varies significantly, ranging from 44% (Vaslui) to 145% (Cluj), and even 280% (Bucharest) of the national GDP per capita average, according to an analysis by researchers at the Faculty of Economics and Business Administration (FSEGA) of UBB in Cluj, conducting the “Romanian Economic Monitor” research project.
Counties at the bottom in terms of GDP per capita – Vaslui, Botoșani, Giurgiu – barely reach 44-48% of the national average, while top-performing counties (Brașov, Timiș, Cluj) reach values of 116-145%, and the capital reaches as high as 280%, as shown in the researchers’ analysis presented by Economedia.
Different economic performances influence average wages across the country’s counties. With few exceptions, counties that generate higher economic value per capita also record higher average net wages, explain the researchers for Economedia. Therefore, counties aiming to offer higher wages to private sector employees should focus on improving economic efficiency and productivity.
“A decade ago, Romania was at 55% of the EU average for this indicator, but recent Eurostat data show an increase to 80%. Romania has thus surpassed countries like Hungary and Slovakia and reached the level of Poland. However, it is important to note that these data reflect national average values, and individual perception may differ, influenced by regional inequalities within the country,” explain the economists.
Economic indicators at county level
Economists have analyzed economic indicators at the county level to provide further explanations:
There are significant differences in GDP per capita between counties.
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- Counties with the lowest values: Vaslui, Botoșani, Giurgiu (44-48% of the national average).
- Counties with the highest values: Brașov, Timiș, Cluj (116-145% of the national average).
- The capital, Bucharest, records 280% of the national average.
- Six counties exceed the national GDP average: Cluj, Timiș, Brașov, Constanța, Sibiu, Prahova.
- At the bottom of the ranking are Vaslui, Botoșani, and Giurgiu.
Regarding incomes:
- Only Bucharest, Cluj, Timiș, Ilfov, and Iași exceed the national average.
- The lowest average net salaries are in Teleorman, Vrancea, and Harghita.
Economists emphasize that these differences in economic performance are also reflected in the level of average wages in the country’s counties.
“Overall, although there are a few exceptions, it can be stated that counties that can generate higher economic value per capita also achieve a higher level of average net wages. Another important aspect of this issue is that counties with better performance in these two indicators also have a higher growth rate, which complicates potential government attempts to reduce economic disparities between the country’s counties,” say the Romanian Economic Monitor economists.
Conclusions and perspectives
Analysis by economists from the Faculty of Economics and Business Administration at UBB Cluj emphasizes that counties with higher GDP per capita tend to have higher average net salaries. This indicates a direct correlation between economic performance and the standard of living of residents. For example, counties like Brașov, Timiș, and Cluj, which rank at the top in terms of GDP per capita, also record average net salaries above the national average.To reduce these regional inequalities, less developed counties should focus on improving economic efficiency and productivity. The government should support these counties through policies that encourage investment, infrastructure development, and professional training. These measures could stimulate economic growth and, consequently, contribute to an increase in average salaries in those counties.
