Romania’s balance-of-payments current account recorded a deficit of EUR 585 million in the first eight months of the year, down from EUR 1.1 billion in the same period of 2014.

The current account deficit reflects the difference between the money going out of the country and the money coming in during a given period.

The primary income deficit, which shows the net position on cross-border employee compensations and investment income, went down by EUR 372 million, to minus EUR 2 billion. The secondary income balance, which reflects other money transfers made by individuals, companies, and the Government, showed a surplus of EUR 1.65 billion, some EUR 551 million higher than in the first eight months of 2014.

On the other hand, Romania had a deficit of EUR 223 million from the international trade with goods and services, compared to a EUR 141 million surplus last year. The goods trade balance had a deficit of EUR 4.43 billion whereas the services balance saw a surplus of EUR 4.21 billion.

At the end of August this year, Romania’s long-term external debt amounted to EUR 70.1 billion, down by 7.5% compared to December 31, 2014. This represented 78% of the total external debt.

Meanwhile, the short-term external debt reached EUR 19.6 billion, up by 3.9% compared to December 31, 2014.

editor@romania-insider.com