Traffic jams are bleeding the Romanian economy dry

The average amount of time drivers waste in traffic jams in Bucharest amounts to more than one working week a year. Bucharest ranks second on a list of European capitals for traffic snarls due, among other things, to the sheer number of vehicles on the road and its crumbling infrastructure. In 2025, 171 hours were spent stuck in a jam during peak hours, a figure that is equivalent to five working days, according to data from the navigator company Tom Tom. Based on figures collected by GPS devices, the data reveals that it takes drivers 62.5% longer to cover the same distance they would cover when the traffic circulates more smoothly. During peak hours, the average speed was 18.5 km/h (11.5 mph) and the distance covered in 15 minutes was 4.6 km (2.8 miles). The worst day to travel was on October 7 when motorists drove only 2.6 km (1.6 miles) in 15 minutes.

“Traffic congestion has a large and measurable cost, usually in the order of 1% to 2% of GDP,” explains Dan Popa, an economist and journalist for the Hotnews.ro news outlet. That means between €3.5 billion and €7 billion a year in Romania. “It is time that could be spent producing goods and services, attending meetings or providing services, so it directly reduces productivity,” Popa says, while adding that this phenomenon increases companies’ expenses and logistics: “It delays the transportation of goods, raises delivery costs, reduces the reliability of supply chains and forces companies to have more inventory, which contributes to raising prices and undermining competitiveness.”

It also has an impact on the efficiency of the labor market. “Long commutes reduce the range of jobs workers are willing to take and the number of workers companies can depend on, which decreases efficiency and regional production,” says Ramona Popa, professor of economics at the Bucharest Academy of Economic Studies. “This lost time amounts to a considerable hidden tax for both workers and companies,” says Ramona, who lists other direct costs such as fuel, car maintenance, insurance, parking fees, subscriptions and public transport fees and, sometimes, tolls.

Two million cars

Despite the fact that more than two million vehicles circulate in Bucharest daily, matching the size of its population, the Romanian capital is not at the bottom of the ranking in Europe in terms of traffic. That distinction went to Dublin last year, where drivers spent 191 hours in traffic jams – nearly eight days – and the average speed was 17.4 km/h. (10.8 mph). In Madrid, cars spent 98 hours in traffic jams, just over four days, with an average speed of 20 km/h (12.5 mph). “There is also the cost of lost time: the value of the hours spent on the road instead of on work, household chores or relaxing; it is usually estimated in terms of the worker’s salary,” says Popa.

However, traffic jams also generate additional costs for health and the environment that are difficult to quantify. “In EU cities, road transportation is a major source of air pollution and noise; approximately 96% of urban residents are exposed to levels above WHO recommendations, which translates into significant losses in terms of health and the economy,” Popa points out, indicating the additional fallout of stress and job satisfaction, which can affect productivity and well-being.

“Studies on working from home show that avoiding commuting saves considerable time and reduces daily transportation and parking expenses,” Popa explains. “For many employees, reducing the cost of commuting is mainly why they prefer hybrid or remote work, as it effectively increases their net income and available time, without an actual increase in salary.”

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