Romania is the most competitive country in the region in terms of labour costs relative to productivity, according to an Erste Group report quoted by Cursdeguvernare.ro.
Although the labour costs have increased more than productivity, the nominal gross hourly wage in Romania is 35% of the EU27 average, while the nominal productivity per employee is around 80% of the EU27 average, according to the report.
“The Central and Eastern Europe (CEE) region continues to offer a price advantage, namely low labour costs, compared to productivity levels. Romania stands out in particular from this perspective: low labour costs compared to a decent level of productivity compared to the EU average,” the cited report states.
In the last decade, Romania has recorded the highest real productivity growth in Central and Eastern Europe, over 30%, closely followed by Serbia and Poland.
iulian@romania-insider.com
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