Demographics To Hinder Romania’s Long Term Economic Growth – Ctrl Bk Official

He said that while the migration of the country’s workforce to other European states may be reversible, the country’s constant drop in birth rate since 1992 cannot be compensated and will start reflecting on the labor market in 2010.

"Only seven countries could manage to sustain economic growth of over 5% for more than 20 years, such as China, Ireland and Macao, but none has had demographic issues. Because of its demographic problems, Romania cannot hope to maintain such growth in the long run," Lazea said during a seminar.

On the other hand, Bianca Pauna of the Romanian National Economic Research Institute said employment rates are lower among youngsters compared to other age categories.

According to a study Pauna presented, some 10% of the country’s population has migrated, but that number actually represents 25% of the active population.

Pauna added workforce shortages are poignant in urban areas and migration from rural areas is lower than expected. Also, 30% of Romanian employees work in agriculture and contribute only 10% of the country’s gross domestic product.