Lazea (BNR): Workforce in Romania is underpaid, while capital is overpaid
Workforce in Romania is underpaid, while capital is overpaid, and when we talk about wages we have to strike some pins, meaning solving the problems with roads, production and justice, senior economist of Romania's National Bank (BNR) Valentin Lazea said Wedenssay.
"Workforce in Romania is underpaid, while capital is overpaid. The capital takes up almost 60 percent of the National Gross Income (NGI), and the workforce almost 40 percent. Should we wonder why that is the case? It is because foreign and/or Romanian entrepreneurs draw their plans including all the measures they have to pay for, the trips they had to take that use up time and incur spending, production that entails spending, legislative affairs that entail the use of lawyers, jurists and so on, and all this is reflected on small wages," Lazea told the release on Wednesday of a 2017 economic report on Romania.
In his opinion, Romania has to send the pins flying, meaning it has to solve problems with infrastructure, production and justice.
"We in Romania have to learn that if we want to talk about high wages we have to send some pins flying, namely to solve problems with infrastructure, production, justice and so on. Until then, we can gather for conferences and brag about how well our capital has it," said Lazea.
Head of the European Commission Representation in Bucharest Angela Filote told the release conference of the report that Romania might this year record the highest increase in the national budget deficit in the European Union, but the Romanian Government has given assurances that there should be no reasons to worry about that.
Under the winter economic forecasts of the European Commission released in mid-February, Romania should see a widening of its government deficit to 3.6 percent of the Gross Domestic Product (GDP) in 2017, from its autumn forecast of 3.2 percent, while in 2018 it should further widen to 3.9 percent of the GDP.
The European Commission also upwardly adjusted to 4.4 percent its economic growth estimates for Romania in 2017, expecting a slowdown to 3.7 percent in 2018.