Living standards have been catching up
Note: OECD is a weighted average. Real GDP is based on 2015 prices and in purchasing power parity.
Source: OECD National Accounts database.
Restrictive monetary policy remains appropriate
Policy interest rates
A period of moderate growth will help lower inflation
Stabilising public finances
Stabilising public debt requires fiscal consolidation
Note: The graph shows general government gross financial liabilities, Maastricht definition.
Recent pension reforms will encourage Romanians to stay in work longer
Employment rates of older workers 2022
Higher tax revenues are needed to fund priority spending
Tax revenues
2022 or latest available year
Note: OECD is an unweighted average.
Source: OECD Revenue Statistics, OECD National Accounts database and OECD calculations.
Stronger tax enforcement will improve revenue raising capacity
Value added tax gap
2021, % of estimated total VAT liability
Note: VAT gap estimates the difference between VAT revenue that would be collected with full compliance and actual VAT receipts. The VAT gap covers revenues lost to fraud and evasion but also insolvencies, administrative errors and legal tax optimisation. Statistical and measurement discrepancies can give rise to negative values in countries such as the Netherlands where non-compliance is very low.
Source: European Commission.
Lifting productivity
Strengthening the capacity of the public administration to make full use of EU funds
Total allocation of EU funds
Note: “Cohesion Policy” refers to the European Social Fund, European Regional Development Fund, Cohesion Fund, and support for the European Territorial Co-operation. The graph shows total allocations over 2021-27. “RRF Grants” shows maximum grant allocations from Recovery and Resilience Facility over 2021-26.
Source: OECD calculations based on European Commission data as of 8 December 2023.
Enhancing lobby control can improve the rule of law
Control of corruption
Scale: -2.5 (worst) to 2.5 (best), 2022
Note: OECD is an unweighted average.
Source: World Bank, Worldwide Governance Indicators.
Improving economic opportunity
The tax and transfer system can do more to reduce poverty
Persons at risk of poverty or social exclusion
Note: A person “at risk of poverty or social exclusion” has a low disposable income, is materially deprived, or lives in a household where adults are not working or working very little. Source: Eurostat.
Female employment has risen but not far enough
Female employment
% of women aged 15-64
Highest five EU OECD countries
Note: “Highest five EU OECD countries” is an unweighted average of results for the five EU-OECD countries with the highest female employment rates. In 2022, those countries were Denmark, Estonia, Finland, the Netherlands and Sweden.
Source: Eurostat.
More childcare places would support workforce participation
Public spending on early childhood education and care 2019 or latest available
Note: Data for Romania are not adjusted for differences in the entry age for primary schooling and cover all public expenditure on childcare and pre-primary education regardless of the age of those enrolled. OECD is an unweighted average. Source: OECD Family Database.
Accelerating the net zero transition
Abatement action must pick up to reach net zero emissions
Note: The dashed line shows projected emissions under current and planned policies.
Source: OECD Environment Statistics database and OECD calculations based on Romanian Ministry of Environment projections.
More green power is needed to replace fossil fuels
Note: For 2030, the figure shows estimated renewable electricity generation required to stay on track for net-zero emissions by 2050.
Source: IEA Renewables Information Database and Government of Romania.
Higher and more consistent carbon pricing would incentivise emissions reductions
Implicit carbon prices in energy taxes 2021
Note: Implicit carbon taxes are calculated as the ratio of revenue from taxes on energy (including explicit carbon taxes as applicable) to greenhouse gas emissions from fuel combustion. Estimates exclude prices emerging in the EU Emission Trading System.
Source: IEA World Energy Balances database.
Retrofitting support will help households to save energy
Note: The graph shows unit consumption of energy for space heating in buildings. Data are adjusted to correct for climate variation across countries and years.
Source: Odysee-Mure.
Enforcing strict land-use rules would limit exposure to climate -related risks
Note: This indicator presents the share of the population exposed to river flooding with a 10-year return period. A return period is the average or estimated time in which a flood event is likely to recur.
Source: Maes, M. J. A., et al. (2022), "Monitoring exposure to climate-related hazards: Indicator methodology and key results“.
For more information
Disclaimers:
The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.