Romania’s CA deficit widens to 9% of GDP in 12 months to February
Romania’s current account (CA) deficit surged 2.7 times to EUR 3.18 billion in February, and the deficit in 12 months to February rose by 43% y/y to EUR 31.8 billion, according to data published by the National Bank of Romania (BNR).
iulian ernst · Journalist
· Updated · 3 min read
Romania’s current account (CA) deficit surged 2.7 times to EUR 3.18 billion in February, and the deficit in 12 months to February rose by 43% y/y to EUR 31.8 billion, according to data published by the National Bank of Romania (BNR).
Driven by robust private consumption and a wide public deficit, the country’s external deficit reached a new record and contributed to rising macroeconomic challenges. The correction of the twin deficits is the key indicator followed by the rating agencies, which are likely to decide whether to push Romania’s sovereign to the junk region after the May elections, depending on the fiscal corrective package envisaged.
