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CNP: Vaslui, Teleorman and Mehedinti the poorest counties

National and European official data prove, every year, that small steps are made in eradicating poverty. The latest figures available are from 2017, but refer to 2016. They prove that in case the state did not pay social assistance, half of the population would risk poverty and social exclusion. There are some counties in critical situation.

Poverty data concern productivity. Per capita GDP is generally used as a living standard indicator, but a higher per capital GDP means a higher living standard. This indicator can be also used to measure labor force productivity.

A look at per capital GDP shows that the lowest levels were found in 2017, according to the National Prognosis Commission (CNP), in Vaslui (4,343 euro), Botosani (4,702 euro), Teleorman (5,402 euro), Mehedinti (5,402) and Olt (5,615 euro), according to the National Prognosis Commission. By comparison, the Capital had in 2017 a per capital GDP of 25,400 euro, a little under the cumulated amount of the five mentioned counties.

In some of these counties unemployment was at high level last year. For instance, it was 10.2% in Vaslui, 10% in Teleorman, 9.4% in Mehedinti, followed by Dolj with 8.8% and Galati, 7.9%. On the other hand, the lowest unemployment was in Ilfov (0.6%), Timis (1%), Bucharest and Arad (1.5% each) and Cluj (2.1%).

According to Eurostat, Romania ranks first in EU for people with poverty risk with 2.5% of population, Bulgaria ranking second with 22.9%.

Eurostat data show that although there were a few years of drop in the number of people with poverty and social exclusion risk, it started growing in 2016 to 38.8% from 37.4% in 2015.

On the other hand, our neighbour Bulgaria made a spectacular drop of the phenomenon. While in 2012 there were 49.3% people in this situation, in 2016 there were 40.4%, very close to Romania, with a constant yearly drop.

Estimated based on overall available incomes, excluding the value of consumption from household resources, the relative poverty rate was 25.3% in 2016. In absolute values, the number of poor people corresponding to that rat was 5,006 million people. Over one out of four inhabitants of Romania lived in a household whose incomes were smaller than the threshold established at 60% of average incomes available per adult.

Over 2013-2016, the poverty rate estimated according to the threshold established in relation to income level  and distribution in the year when evaluation was made, grew from 23% to 25.3% last year.

The countries with low poverty and social exclusion risk include Sweden, with 16.8% of the country’s population, Holland (16.7%), Denmark (16.8%), Austria (18%), France (18.2%) and Germany (19.2%).

Over 2000-2009, at EU level, the available income of households grew by 16% in EU, dropping after the financial crisis by 3% between 2009 and 2013, and by 5% over 2013-2016.

The available household income grew, on the overall, by 18% between 2000 and 2016, representing an average growth rate of 1% per year, according to Eurostat.




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