Romania’s exports plunge by 7.5% y/y in August

Romania’s exports contracted by 7.5% y/y to EUR 6.55 bln in August, while imports dropped by 3.0% y/y to EUR 9.43 bln amid a combination of subdued economic activity across Europe and still strong domestic demand at home, according to data published by the statistics office INS.

The trade deficit consequently widened by 9% y/y to nearly EUR 2.9 bln in August.

In the 12 months to August, Romania’s exports contracted by 1.9% y/y to EUR 92.1 bln, 2.8% less compared to the EUR 94.7 bln peak in May 2023.

For the same 12-month period, the country’s imports contracted by only 0.4% y/y and 2.7% compared to May 2023, to EUR 123.7 bln. The domestic demand for consumption and investments prevented sharper contraction.

The trade gap thus increased nominally by 4.3% y/y to EUR 31.6 bln in the 12 months to August 2024.

As a ratio to GDP, however, this was only some 9.3% of GDP, down from 10.1% in August 2023. The nominal GDP in 12 months to June (latest data available) expanded by 12.6% y/y, driven mainly by a significant advance in prices.

In real terms, Romania’s foreign trade (export, import, and even deficit) is shrinking in line with the industrial slowdown in Europe and subdued industrial activity at home.

(Photo source: Prasit Rodphan/Dreamstime.com)