2021 was the second consecutive year marked by the coronavirus pandemic. However, the positive trend of Romania’s private consumption can be accounted for by a series of factors. On the one hand, the starting base (2020) was a low one. Secondly, some fields, such as fashion, were harmed during the entire 2020 by the pandemic, with 2021 representing a first step toward revival. Of equal importance was the fact that there was more money on the market going to consumption. Last, but not least, inflation is also reflected in private consumption.
Now, all eyes are on 2022, when the trend of private consumption is under the sign of a doubt.
It remains to be seen how authorities will counter inflation, the workforce shortage or transportation crunch to keep consumption appetite up.
Local executives and entrepreneurs are divided when it comes to 2022 consumption estimates. Some are upbeat the upward trend will continue, whereas others are afraid price hikes will make Romanians more cautious and wary of the way they spend their money.
(English version by Catalina Apostoiu)