BNR: One in four Romanians fit for work has left the country. Structural problems ahead

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Demography, low payment discipline in the economy and the low level of financial intermediation – these are the main structural vulnerabilities Romania is facing, the National Bank of Romania (BNR) has revealed on Monday in the document called ‘The map of structural vulnerabilities in Romania.’

Liviu Voinea (photo), member of the BNR Board and BNR deputy Governor, said it is for the first time such a map has been drawn. The risks may be reduced by adequate policies, but the structural vulnerabilities last longer and structural policies are needed to deal with them.

The demographic issue is caused by the natural growth of the population, which is negative since 1991 and last year was of -3.1 to one thousand, and by immigration, reports.

“Immigration has reached very high levels in the past 15 years: as overall number of Romanians who left abroad, as share of the population – 14%, as share of the labour force which remained in the country – 36.6%. This means, by adding the domestic labour force, that actually one in four Romanians fit for work has left the country to work abroad, and the ratio between them and those at home is  1 to 3,” Voinea said.

This is a structural problem, it cannot be solved from one day to another, he added.

The second structural vulnerability is the companies’ balance sheet. The companies with own capital under the regulated limit – 40% of all companies in Romania; companies with negative capitals – 39%; companies with zero turnover – 24%, one out of four; companies with zero employees – 41%; companies facing atypical situations: negative own capitals, zero turnover, zero employees – 14%. “This is one of the symptoms which would be solved until joining the Eurozone,” Voinea said.

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