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BNR: Company sector in Romania is not developed enough reported to local market dimensions

The company sector in Romania is not developed enough reported to the dimensions of the local market and compared to the other former socialist European countries, shows a presentation made by Florin Georgescu, the deputy governor of the National Bank of ROmania.

According to him, there are 2,2 small companies per 100 people in Romania, while the EU average is 4.5 companies. In the Czech Republic there are 9.4, in Slovakia 7.5, Slovenia  6.4, Lithuania 5.4, Hungary 5.3, Latvia 5.2, Estonia 4.9, Bulgaria 4.4 and Poland 4.1.

According to the source quoted, the number of employees at economy level has significantly reduced compared to 1990. In 1990 there were 8.2 millions (including unemployment masked by artificial employment in socialist enterprises), against 3.4 pensioners  (2.4 employees for one pensioner). In June 2017 there were 4.9 million employees and 5.2 million pensioners, in the condition in which after 1989 unemployment was masked by early retirements and emigration (0.92 employees for a pensioner).

“Labour productivity in Romania is at a higher level than the cost of labour per hour reported to European average. In 2016, labour productivity in Romania represented 31% of EU average, on the rise by 4% compared to 2008 and 5% compared to 2012, following economic adjustment. In 2016 labour force cost per hour represented 22% of EU average (-9% of labour productivity) on the rise by 2% against 2008 and 5% against 2012,” Georgescu informed.

He also showed that over 2014-2017, the lowest salary grew both in Romania (+81%, with low reference base) and in the other countries in the area: Czech Republic +29%, Hungary +26%, Slovakia +24% and Poland +19%.

“Although labour force costs grew over 2012-2017, 700,000 new jobs were created, especially in real economy. The growing process of wage mass is natural and did not affect economic competitiveness in general,”the quoted source mentions.

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