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Romania’s middle class has experienced significant growth, reaching 61% of the population in 2023, marking a 10-percentage point increase since joining the EU. Despite this growth, which is the largest in the region, Romania still holds the second-lowest middle class size after Bulgaria. This analysis was conducted by Ella Kallai, the chief economist of Alpha Bank Romania.

The middle class expansion in Romania is attributed to the reduction in the high-income class share from 14% in 2007 to 8% in 2023, as well as a decrease in the low-income class share from 35% in 2007 to 31% in 2023.

Compared to other EU member states like Greece and Italy, Romania exhibits a larger middle class and lower income inequality. The average annual disposable [mepr-show rules=”1611″ unauth=”both”]income in Romania has significantly increased, reaching 31% of the EU average in 2023 from 13% before joining the EU.

In terms of income inequality, Romania and Poland saw a notable decrease, with the median disposable income increasing faster than the average disposable income. This trend indicates a reduction in income inequality.

The GINI coefficient, a measure of income inequality, shows that Romania, along with the Czech Republic, Poland, and Bulgaria, experienced a decrease in income inequality from 2014 to 2023. Romania stands out as one of the few EU countries with a small difference between median and average disposable income.

The distribution of income in Romania illustrates a decrease in the income gap between the richest and poorest segments of the population. The pandemic has posed challenges for Romania in advancing to a higher income decile, with income increases becoming more difficult to achieve.

In conclusion, Romania’s progress in reducing income inequality and expanding the middle class post-EU accession is a notable achievement, contributing to social cohesion and economic growth.

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