Romania’s current account deficit reached EUR 2.66 billion after the first nine months of this year, up 142% compared to the same period last year.

The growth was mainly due to the dramatic increase in dividends repatriated by foreign companies, according to data released by Romania’s National Bank (BNR). In the first nine months of last year, the current account deficit amounted to EUR 1.1 billion.

The current account of the balance of payments includes amounts received and paid by Romania in trade relations with other countries.

The trade deficit amounted to EUR 6.93 billion after the first nine months of the year, up 25.1% compared to the same period last year. However, Romania had a surplus of EUR 5.66 billion on the service trading side, 12.7% higher than in the first nine months of 2015.

The primary revenues balance, which includes compensation of employees, investment income (direct investment, portfolio investment, other investment) and other primary income (taxes, subsidies) had a deficit of EUR 3.8 billion, up by 28.5% compared to the same period of 2015, as the outflows saw a strong increase while the inflows were similar to last year.

Meanwhile, the secondary income balance, which includes current private transfers, remained constant, at some EUR 1.88 billion.

editor@romania-insider.com