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February 4, 2023
ECONOMYFINANCE&BANKING

Romania’s richest 20 pct earn 7.2 times more than poorest 20 pct

The incomes of Romania’s richest 20 percent were 7.2 times higher in 2014 than the incomes of the country’s poorest 20 percent, in what is the biggest inequality ratio in the European Union shows a publication of the National Institute of Statistics (INS) sent upon the request of Agerpres.

“In Romania, the income inequality is higher than the EU average. In 2014, the richest 20 percent of EU citizens earned incomes 5 times higher than the poorest 20 percent. The smallest gaps between the incomes of the rich and poor were recorded in the Czech Republic (3.5), Finland (3.6), Slovenia (3.7), Belgium and the Netherlands (3.8 each), Slovakia and Sweden (3.9 each), while the widest gaps were in Romania (7.2), Bulgaria and Spain (6.8 each), Estonia, Greece and Latvia (6.5 each). In the states where the inequality index is low, the poverty rates are also much lower than the European average,” reads the document.

According to INS, the income inequality index was higher than the European Union average in 10 member states, Romania included.

Romania is on the top position in the EU by the 2014 relative poverty rate, a position specific to a state with relatively high issues in providing a high standard of living for all its citizens, INS also said.

“According to data collected by the European statistical office Eurostat, Romania’s position is generally that of a state with relatively high issues in providing a high standard of living for all its citizens. In terms of relative poverty, Romania (with a rate of 25.1 percent) was in 2014 in the group of the relatively poor countries, with rates above the EU average, such as Spain (22.2 pct), Greece (22.1 pct), Bulgaria and Estonia (21.8 pct), Latvia (21.2 pct), Portugal (19.5 pct), Croatia and Italy (19.4 pct), Lithuania (19.1 pct). Far smaller poverty rates are recorded in some countries such as the Czech Republic (9.7 pct), the Netherlands (11.6 pct), Denmark (12.1pct), Slovakia (12.6 pct), Finland (12.8 pct) and France (13.3 pct),” INS informs.

The relative poverty rate is the share of poor people with an available per adult equivalent income lower than the threshold set at 60 percent of the median income in the total population.

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