Romania’s CA gap shrinks by 15% YoY in February

The current account (CA) deficit of Romania narrowed by 15% YoY to EUR 1.67 bln in February, the National Bank of Romania (BNR) announced.

In January, the CA gap had shrunk by 12% YoY to EUR 1 bln. The CA gap in the 12 months to February decreased for the second month in a row to EUR 26.2 bln after it reached EUR 26.7 bln at the end of 2022.

The net import of goods contracted by 15% YoY to EUR 2.0 bln in February, and this was essential for the entire CA balance in the month.

The surplus of services increased by 25% YoY to EUR 922 mln, and this contributed as well.

The balances of primary and secondary incomes made a deeper negative contribution, though (-EUR 440 mln and -EUR 146 mln respectively).

Foreign direct investments were EUR 1.03 bln in February (constant from the same month of 2022), and the rolling FDI in the 12-month period to February remained EUR 9.7 bln – out of which EUR 6.7 bln was reinvested profits and EUR 3.2 bln intra-group loans.

Equity FDI in the 12-month period to February remains positive (net investments of residents abroad), namely EUR 257 mln, thanks to Romgaz taking over ExxoinOil’s offshore registered subsidiary with a 50% participation in Neptun Deep.

(Photo: Oleg Kachura/ Dreamstime)