Wednesday, April 7, 2010

Romanian net wages up 3.9 pct y/y in February

BUCHAREST, April 7 (Reuters) - Romania's average net wage rose 3.9 percent year-on-year in nominal terms to 1,411 lei ($462.2) per month in February, the National Statistics Board said on Wednesday.

Wages were down 1.1 percent on the month.

Double-digit wage growth that surpassed productivity levels in the pre-crisis years has fuelled a large current account deficit, which has left Romania one of the most vulnerable economies in the wake of the global cash squeeze.

It took a painful recession to correct the external imbalance and now Romanians are facing pay cuts, while unemployment is yet to peak.

The government is under pressure to cut jobs and wages as it needs to cap its large budget deficit at 5.9 percent of GDP under a deal with the International Monetary Fund.

But powerful trade unions threaten large scale strikes in the near future and analysts are concerned the government may bow to social pressure. 

FEB '10 JAN' 10 FEB '09 JAN '09
Net average wage (lei) 1,411 1,426 1,358 1,355
Change y/y (pct) 3.9 5.2 19.8 12.9

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