More Than Half Of Romanians Struggle To Pay Bills, 25% In Debt – Study

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Despite this, the confidence index has increased slightly from previous months.

„After a ‘hot’ summer, marked by the deepest pessimism of the last ten years, the fall season means a slight recovery for the population’s confidence index. (…) The number of skeptics as regards the general economic situation continues to be high and the outlook is quite bleak,” says a GfK press release.

While in July, the year’s „darkest” month as far as confidence in their household’s financial security, almost 75% of Romanians believed they are worse off than 12 months before, in September and October, only 7 in 10 of those who answered felt the same way.

Concordia: Inflation has passed its peak and could fall to 6% by the end of the year

Furthermore, only a little over half of Romanians say they expect their finances to get worse, pointing to a positive trend compared to June and July when their pessimism was at its peak and two thirds said they believe the situation will be even worse by next year. Only 9% hope to be better off in the next year and 33% expect no change in their situation.

„88% of those who answered said the economy’s has regressed in the past 12 months, but a third of them hoped things will be better next year. More than half (56%) of Romanian said they have trouble coping with running expenses and almost a quarter said they are in debt. The share of debtors is the highest in the past seven years,” says the press release.

Confidence in job security is in direct relation with one’s financial situation. On average, in September and October, 83% said they expected a rise in unemployment and a mere 5% are optimistic. While opinions on this topic are relatively constant, regarding both past and future inflation, the answers are the most negative of the past 12 months. Almost 77% of Romanians anticipate higher prices in 2011, while 83% said they felt the rise in inflation affecting most products over the past year. The number of optimists has shrunk significantly, with less than one in ten (0.6%) Romanians hoping prices will drop in the near future.

The current context does not seem to favor saving up, according to the study. More than 8 in 10 Romanians said they do not intend to save in the next year. Two years after the outset of the economic crisis, plans to buy a car or a home are getting rarer every quarter: 9% and 4%, respectively. A slightly higher share of those who answered (15%) intend to invest in home improvement: buying a central heating unit or new bathroom appliances.

This information is included in the Consumer Confidence Barometer, a study financed by the European Commission and conducted every month by GfK Romania. The data was collected from a sample of 1,000 people, aged 15 or older, living in Romania.