Romania’s balance-of-payments current account posted a deficit of EUR 8,276 mln in January-May, compared with EUR 9,938 mln in the same period last year, the National Bank of Romania (BNR) announced on July 14.

The breakdown shows that the deficit on trade in goods declined by EUR 1,161 mln, the surplus on services expanded by EUR 1,804 mln, the primary income deficit grew by EUR 1,150 mln, while the secondary income surplus decreased by EUR 153 mln.

More specifically, the balance of trade with goods narrowed from EUR 11,997 mln in January-May last year to EUR 10,816 mln in the same period this year. The surplus registered in the trade with services increased from EUR 4,467 mln in January-May 2022 to EUR 6,271 mln in January-May 2023.

The primary income deficit changed from EUR 3,071 mln in January-May 2022 to EUR 4,221 mln in January-May 2023. The surplus of the secondary income balance decreased to EUR 490 mln in January-May 2023 from EUR 643 mln in the same period last year. 

The state forecasting body CNP projects this year’s current account deficit at EUR 26,220 mln, slightly down from EUR 26,574 mln last year. CNP also expects the CA deficit to increase to EUR 27,228 mln in 2024. 

Non-residents’ direct investments in Romania totalled EUR 3,861 mln (compared with EUR 3,884 mln in January - May 2022), of which equity (including the estimated net reinvestment of earnings) and intercompany lending recorded net values of EUR 4,176 mln and -EUR 315 mln, respectively.

iulian@romania-insider.com

(Photo source: Romolo Tavani/Dreamstime.com)