Romania’s CA gap shrinks by 20% y/y in January-October

Romania posted a current account (CA) deficit of EUR 18.3 billion in January-October 2023, 20% smaller compared to EUR 22.9 billion in the same period of 2022, the National Bank of Romania (BNR) announced.

The deficit in international trade with goods diminished by EUR 3.4 billion, and the surplus of the trade with services increased by EUR 1.16 billion.

At the same time, the balance of primary incomes recorded a smaller deficit (-EUR 61 million), and the balance of secondary incomes recorded a smaller surplus (-EUR 66 million).

The trade with goods remains the main cause of the wide CA gap, with a negative balance of EUR 23 billion, while Romania posted EUR 11.5 billion in the trade with services, reflected mainly by the experts in the sectors of transportation services (EUR 5 .1 billion surplus), followed by IT&C services (EUR 4.9 billion surplus).

Foreign direct investments totalled EUR 6.14 billion in January-October 2023, compared to EUR 9.52 billion in the same period of 2022. Out of the total, the equity investments (including the estimated net reinvested profit) totalled a net value of EUR 6.07 billion, and the intragroup loans recorded a net value of EUR 70 million.

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