In spite of the seasonal pattern of small deficits or even surpluses in the first month of the year, Romania’s current account (CA) balance posted a deep EUR 815 mln gap in January 2022, the National Bank of Romania (BNR) announced.

The balance thus deteriorated by EUR 824 mln compared to the EUR 9 mln surplus posted in January 2021.

The bulk of the impact was made by the trade with goods, where the deficit has widened by 75% YoY to EUR 2.0 bln, EUR 868 mln more compared to January 2021.

But more expenditures of Romanians travelling abroad this January, EUR 446 mln compared to only EUR 190 mln in January 2021, also contributed.

In the 12-month period to January 2022, Romania’s CA gap reached EUR 17.77 bln - or 7.4% of GDP, 66% more compared to the 12-month rolling CA gap calculated as of January 2021 when the CA gap-to-GDP ratio was only 4.9%.

In January 2021, before the pandemic, the CA debt-to-GDP ratio was 5.1%.

(Photo: Octav Ganea/ Inquam Photos)

iulian@romania-insider.com