Romania’s trade gap narrows in May despite still modest exports

Romania's foreign trade gap narrowed by 15.6% year-on-year to EUR 1.25 bln in May.

But the exports remained at roughly 60% of their level last year (EUR 3.76 bln, -40% year-on-year) while imports decreased by a slower rate (-35% year-on-year) to EUR 5.01 bln.

The trade gap in the rolling 12 months ending May was just over EUR 18 bln, slightly down from EUR 18.26 bln one month earlier. But the head of the foreign trade association, ANEIR, Mihai Ionescu, estimates that the gap might continue widening through the year to hit EUR 20 bln for the whole year.

Chances for the improvement in the trade with goods depend on investments in new production capacities, along with expectations related to the re-location or at least dissipation of the major manufacturing hubs in Asia. However, this is a long-term process, whose impact on Romania may be overestimated.

(Photo source: Pixabay.com)