Romania’s development is slower than economic growth due to the relatively poor quality of growth; in the last 15 years the GDP has increased 4 times, and the human development index only by 12.2%, BNR Senior Deputy Governor Florin Georgescu said on Friday, capital.ro informs.
“Development in Romania is slower than economic growth due to the relatively poor quality of growth (structural problems in the real economy, the main force for the creation of GDP and deficiencies in GDP sharing), hampered by the obstruction of primary and secondary distribution, as a result of financial indiscipline and illegalities in society. In the distribution plan there is a disproportionate ratio between wages and profits in favour of the latter, redistribution faces insufficient financial transfers and social assistance, and within budget due to poor tax collection,” the document reads.
Georgescu says that in the past 15 years the Gross Domestic Product has increased 4 times, and Gross Domestic Product per capita increased by 2.3 times, while the human development index increased by only 12.2%.
The human development index is a statistical composite index with values between 0 and 1, determined by life expectancy, educational attainment and income per capita.