The current account balance of Romania, calculated over a 12-month rolling period, surged by 58.5% YoY to EUR 26.2 bln as of October, after a record EUR 2.9 bln (+74% YoY) in the month.

The 12-month CA deficit thus hit 9.5% of the annual GDP calculated based on the latest available data, of end-September, compared to 7.0% calculated on the same base in October 2021.

The trade deficit with (net import of) goods surged by 39% YoY to EUR 31.2 bln at the end of October, remaining the primary driver of Romania’s external deficit.

However, the outflows generated by the foreign direct investments (FDI) rose as well, by 36% YoY to EUR 11.2 bln over the 12-month period – reaching a size that is comparable with the surplus generated by Romania’s net export of services (EUR 11.8 bln in the rolling 12-month period, +29% YoY). 

Regarding the foreign direct investments in Romania, they dropped to EUR 9.4 bln in 12 months to October.

When it comes to equity investments (as opposed to reinvested earnings or intra-group loans), Romania turned for the first time in past decades into a net foreign investor (+EUR 512 mln in the 12-month period) – thanks to the Romgaz taking over the EUR 1 bln stake from ExxonMobil, in August.

andrei@romania-insider.com

(Photo source: Dreamstime.com)