Romania’s exports and imports reached new record highs last year, and the trade deficit went up to EUR 9.9 billion.

Despite the growth, the deficit was far from the level of the boom years, which proves that the internal market can better accommodate the increasing demand than it did ten years ago. Imports exceeded exports by EUR 23 billion during Romania’s economic boom years.

The increase in exports and imports recorded last year was due to the strong economic growth, coupled with the consumption boost. These translated into a higher trade deficit.

The imports amounted to EUR 67.3 billion last year, up EUR 4.6 billion (7%) compared to 2015. The exports totaled EUR 57.3 billion, up EUR 2.7 billion (5.1%) over 2015.

The consumption boost was influenced by the tax cuts and wage increases, as well as by the low interest rates which encouraged lending. In 2016, the retail trade turnover, which best reflects the evolution of private consumption, rose by 13.5% year-on-year, compared to 8.9% in 2015. It was the fastest growth pace since 2008, which was reflected in the evolution of the trade deficit. Consumption came close to the level of the boom years.

Despite this, the trade deficit, although exceeding 5% of the GDP, is far from the level before the crisis. The deficit amounted to 17% of the GDP in 2008.

editor@romania-insider.com