Diverging regions, diverging destinies
Posted by Archaeopteryx11@reddit | AskBalkans | View on Reddit | 18 comments
Posted by Archaeopteryx11@reddit | AskBalkans | View on Reddit | 18 comments
Besrax@reddit
Cool graph, but I'd like to see newer data. Bulgaria's GDP per capita PPP has grown by over 50% between 2020 and 2023.
In any case, Romania has had a very impressive growth in the past 10 years, overtaking Croatia, Greece and Hungary by GDP per capita PPP, and the growth isn't showing signs of stopping. I'm really happy for Romania and hoping that the other Balkan countries will follow their steps.
Poglavnik_Majmuna01@reddit
People have been saying that Romania will overtake us in gdp per capita ppp for the last 5 years and it is yet to happen. I understand that Romania has progressed an insane amount, but it’s not some unstoppable economic machine that everyone here tries to make it out to be.
Besrax@reddit
It has already overtaken Croatia though. Their growth is nothing short of impressive, very few countries has had this kind of growth.
https://data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD?locations=RO-HR-GR-HU
Poglavnik_Majmuna01@reddit
According to the IMF statistics, Romania has never overtaken Croatia in GDP PPP per capita. IMF is much better at their job than the WB regarding such measurements and they include the year 2024.
Obviously the gap between Croatian and Romanian gdp ppp per capita nowadays is small (Croatia is at 48,811, whilst Romania is at 47,204) thanks to their economic progress in the past, but I have big doubts that any overtaking will occur. Firstly, Croatian economic growth has been greater since 2021 and will continue to be in the next years unless something horrid occurs. Secondly, I have been hearing stories about Serbia, Bulgaria, Romania catching up or overtaking Croatia for ages in various economic indicators and so far none have occured. Naturally I will have strong doubts for future claims.
Even if Romania does overtake in the year 2030 or something, there are multiple other things they’ll need to catch up to regardless.
Archaeopteryx11@reddit (OP)
According to this map, they’re tied
https://en.m.wikipedia.org/wiki/List_of_sovereign_states_in_Europe_by_GDP_(PPP)_per_capita
WorldlinessRadiant77@reddit
I have a question, what is the GDP growth based on?
Salaries in Sofia, and I think Cluj too, are actually higher so are multinationals headquartered in Bucharest or is it something else driving the GDP? Or are Romanians simply underpaid?
NoEatBatman@reddit
Yes, that's the case for Bucharest at least, also every financial institution has it's headquarters there as well
WorldlinessRadiant77@reddit
So the added value is calculated in Bucharest, but generated somewhere else? I see.
NoEatBatman@reddit
Yep, in case of Cluj though, they seem to have a very large IT sector going on there
Deep_Gazelle_1879@reddit
"very large", like 1/5 that of Bucharest
NoEatBatman@reddit
/capita i meant, guess i should have been more specific
Archaeopteryx11@reddit (OP)
Salaries in Bucharest are higher than Sofia.
WorldlinessRadiant77@reddit
They were last year and are apparently not this year. Which is the point - the GDP difference is massive, but the one in salaries is not. So why?
Archaeopteryx11@reddit (OP)
Good question! I’m not sure I have an answer right now. This is the average salary after taxes at the county level in Romania.
WorldlinessRadiant77@reddit
Wow Romania is very equal!
Archaeopteryx11@reddit (OP)
It is pretty equal, according to this map. If you multiply by about 0.2, you get from leu to euros, so Bucharest is around 1331 euros per month in average salary after taxes. Cluj county is 1227, and Timișoara county is 1136.
AshenriseOfficial@reddit
I think the term "divergence" is a bit stretched. While indeed for a Balkan city Bucharest is an economic powerhouse (it can hold its own among other peers like Warsaw, Prague and Budapest), lifestyle-wise there aren't that many differences between your average Bucharester or Sofian or Belgradian or Athenian. Just sayin'.
Archaeopteryx11@reddit (OP)
Source: https://kinsights.capital.bg/economy/2023/05/09/4479942_how_romania_overtook_bulgaria/