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March 5, 2021
ECONOMY FINANCE&BANKING

GfK: Romanians’ propensity for consumption remains low

Romanians’ propensity for consumption remains low, despite the fact that Romania’s economy grew considerably in 2015, bearing in mind that incomes continue to cover only to some extent daily needs, GfK’s “Consumer Climate Europe” report for the fourth quarter of 2015 shows, Agerpres informed on Wednesday.

“Although the Romanian economy grew markedly in the past year, Romanian consumers’ economic expectations declined in the fourth quarter by 7.9 points and amounted to 10.6 points in December. One year previously, the indicator was still at 17.7 points. Falling economic expectations also had a negative effect on consumers’ income expectations. This indicator fell by 6.4 points to 14.9 points compared with the previous quarter, thus returning to the same level as the previous year,” the report reads.

Moreover, according to the report Romanians’ incomes are only just enough to somewhat cover daily needs. “Hence, their propensity to buy did not change by much in the fourth quarter either. In December it dropped by a further 1.2 points to -7.6 points in December,” the document reads.

On the other hand, at European level the consumption climate improved in the last quarter last year, despite oscillating at first against the backdrop of the refugees’ crisis and terrorist attacks in Paris, however it recovered toward the end of the year against the backdrop of positive economic indicators throughout Europe.

“In the fourth quarter of 2015, several major issues preoccupied consumers and the media, with discussions centering on the refugee crisis, the Paris attacks, and especially the improving economic figures in almost all European countries, as well as the fact that energy costs were still extremely low. From September to December 2015, the consumer climate index for the European Union increased by 1.9 points to 12.2 points,” the GfK report reads.

The results of the GfK Consumer Climate Europe report are based on a consumer survey conducted at the European Commission’s request in all European Union states. Approximately 40,000 persons from 28 states are surveyed on a monthly basis. The sample is representative for the EU’s adult population.

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