Romania’s CA deficit narrows by 39% y/y in June, gap in rolling 12 months drops to 8.9% of GDP

The current account (CA) deficit contracted by 39% y/y to EUR 1.9 billion in June, driven by a 7.9% smaller deficit in the trade in goods (EUR 2.5 billion), according to data published by the National Bank of Romania (BNR). The CA gap in rolling 12 months decreased to EUR 31.8 billion in June from nearly EUR 33.0 billion in May, but it is still up 31% y/y.

The CA deficit to GDP edged down to 8.9% in 12 months to June (based on the latest 12-month nominal GDP, as of March 2025), from above 9% in March-May but still above the 7.4% ratio calculated for June 2024.

The net flow of FDI to Romania also improved in June, when it more than tripled compared to June 2024 to over EUR 1 billion. However, out of this, only EUR 15 million was new equity capital, while most of it (EUR 734 million) was loans extended by parent groups to local subsidiaries (FDI companies).

In 12 months to June, the net flow of FDI to Romania contracted by 6.4% y/y to just over EUR 6 billion (it plunged to under EUR 5 billion as of February). Out of this, however, only EUR 1 billion (-48% y/y) was new equity capital, half of it (EUR 3 billion, -21% y/y) was reinvested earnings, and EUR 2 billion (+125% y/y) was loans extended by foreign parent groups.

The volume of profits generated by FDI companies in Romania during the 12 months to June (when the stock of FDI reached EUR 120 billion) edged down by 6.6% y/y but remained robust at EUR 11.0 billion.

(Photo source: Alexandru Marinescu/Dreamstime.com)