Romania’s current account (CA) deficit in 12 months to February contracted by 8% y/y to EUR 23.17 billion or around 7% of the country’s GDP from 8.8% a year earlier, according to data published by the National Bank of Romania (BNR).

The improvement was driven mainly by the smaller deficit in the trade with goods, which remains the main negative element in the country’s external balance: -EUR 29 billion in 12 months to February 2024, down from -EUR 32 billion in the previous 12-month period.

The EUR 3.1 billion improvement in the balance of trade with goods was visibly driven by the energy imports and contributed critically to the EUR 1.9 billion narrowing of the CA deficit. 

In contrast, the balances in the trade with services deteriorated to a surplus of EUR 13 billion in 12 months to February from EUR 14.1 billion in the previous 12-month period. More tourism spending abroad made an important impact in this regard.

Notably, the outflows of primary incomes (interest and dividends paid to foreign investors less part of the wage remittances sent by Romanians working abroad) increased significantly to EUR 9.2 billion (+EUR 690 million from the previous 12-month period).

Total FDI inflows in Romania contracted by 23% y/y to EUR 6.4 billion in 12 months to February 2024, out of which EUR 4.7 billion (-16% y/y) was reinvested profits of FDI companies.

The new equity capital inflows nearly doubled to EUR 1.3 billion in 12 months to February.

iulian@romania-insider.com

(Photo source: Alexandru Marinescu/Dreamstime.com)