Average salary in Romania to reach 3,000 lei in 4 yrs, finance minister estimates

The average gross salary could hit 3,000 lei in the next four years if the gross domestic product continues to grow at the same pace, according to the estimates of Romania’s finance minister, Varujan Vosganian.

The average pension is gauged to stand at 1,250-1,300 lei in 2012, Vosganian said today while visiting the western county of Timis. The net average wage in Romania increased 24.4 percent year-on-year in June, on significant advance of salaries in the industrial sector and services.

The target is to get close to the seventh position among the EU’s economic powers, the minister said, adding the GDP is forecast to hike from a current 135 billion euros to 220 billion euros. In four years the GDP per capita will stand at 10,000 euros, he added.

The GDP advance is feasible, Vosganian said, adding it will be fueled by the government’s future investments, foreign direct investments, European funds and the hikes of share capitals in the banking and the insurance systems.

Last year investments from the public budget stood at 15 percent and they will rise this year to 18 percent and next year to 20 percent, the minister said. Further estimates point to 30 billion euros public money to be invested from 2009 to 2012, plus 30-40 billion euros other investments and 25 billion euros European funds.

Romania could witness an 8-9 percent economic growth this year on a tempered annual inflation of 6-7 percent in December, said on August 4 the central bank's governor, Mugur Isarescu.

Pressure from excess demand, determined in part by the 8.2 percent economic growth in the first quarter, was a contributing factor to the inflation estimate revision from 6 to 6.6 percent for 2008, the governor said.

Romania is the only country for which the European Commission revised upwards the economic growth prognosis this year.

In the last report published in April, Brussels revised the 2008 economic growth estimate for Romania from 5.9 percent to 6.2 percent. However, it foresees a more temperate advance of the GDP for 2009, to 5.1 percent, down from 5.8 percent in the estimates made public in November 2007.

Romania’s prognosis body (CNP) last estimated a GDP increase of 6.5 percent this year.

NewsIn