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Bucharest
October 21, 2021
BUSINESS

Romanian GDP per capita expressed in PPP represents 55 pc of EU average

In Romania the GDP per capita expressed in purchasing power parity (PPP) represents 55 per cent of the European Union average. It will approach 70 per cent of the EU average around 2020, Public Finance Ministry (MFP) secretary of state Daniela Pescaru stated at a special conference.

“The GDP per capita expressed in purchasing power parity is for Romania 55 per cent of the EU average. We have a 45-percentage-point lag behind the EU average. Estimates point to the fact that Romania will approach 70 per cent of the EU average around 2020. Structural reforms stimulate real convergence, namely GDP per capita, the result being a rise in incomes which leads to a rise in budget revenues, which in turn lowers the budget deficit and the public debt,” Pescaru said.

She pointed out that MFP’s priorities are the pension system, health expenditures and the public debt.

“The pension system, health expenditures and the public debt are among the priorities we have. In what concerns the pensions and health expenditures, the long-term viability of public finances in what concerns costs related to population ageing is analyzed by the European Commission and by national experts within a working group set up at EC level. In Romania’s case, the 2015 report has revealed no short-term risks in what concerns sustainability, a low level of medium-term risks and a moderate risk for the 2060 horizon,” the MFP’s secretary of state explained.

Likewise, Pescaru talked about an estimate pointing to a public pension deficit of 1.2 per cent of GDP in 2060.

“In line with the forecasts for the new framework, it is estimated that the pension expenditures’ GDP share will be below the EU average for the entire period concerned. The public pension system’s deficit will reach 1.2 per cent of GDP in 2060 from a deficit of 2.3 per cent in 2013,” the MFP official pointed out.

 

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