Romania starts year with 15% y/y smaller trade deficit in January

Romania’s trade deficit contractedby 15% y/y, dropping under EUR 2bn in January for the first time in more than two years, partly reflecting lower commodity prices and probably subdued industrial activity (industrial output figures will be published on March 13), according to datapublished by the statistics office INS.

Both exports and imports decreased compared to January 2023 by 1.3% (to EUR 7.09bn) and 4.8% (to EUR 9.04bn), respectively.

The category of fuels and lubricants, that of chemicals decreased as well as the imports of “manufactured goods classified mainly by raw materials” (some 16%-17% in both exports and imports) posted negative annual dynamics on an annual basis. The commodity prices are a key factor for all these categories, as well as the magnitude of the industrial activity.

On the other hand, the record automobile output in January surfaced in the foreign trade numbers as well: exports of “transport means” increased by 5.5% y/y while the imports contracted by 2.0% y/y. Automobiles accounted for 47.3% of Romania’s exports and 35.9% of its imports in January. The sector posted a small surplus of just over EUR 100mn – the best performance of a single economic sector.

Another sector that posted a trade surplus in January was beverages and tobacco (some EUR 54mn) after both exports and imports contracted significantly (by 20% y/y and 25% y/y, respectively).

(Photo: Andrii Yalanskyi/ Dreamstime)