Romanian Households Losing Billions Annually Due to Inflation and Fragmented Savings

Revolut has released its European Wealth Drain Index, highlighting how market fragmentation and low savings rates erode household wealth. In Romania, a household with €10,000 in savings loses around €680 in purchasing power annually due to inflation.

Average deposit rates in Romania (6.50%) fail to match the country's high inflation rate (6.80%), resulting in a real loss of €30 per year even on locked savings accounts.

The report also found that 44.1% of Romanian respondents use multiple financial apps, but this fragmentation hinders investing for 50.2% of multi-app users, citing difficulties with transferring money and lack of clarity on investment options.

Revolut's research shows that if the €38.2 billion in passive bank savings in Romania were invested in diversified capital markets, it would inject around RON 5.1 billion (€1.0 billion) in annual growth capital into the economy.