Romania’s external accounts weakened in the first five months of this year according to the latest data released by the central bank – BNR.

The current account deficit, which reflects the difference between money inflows and outflows, increased by a third compared to the first five months of 2018, to EUR 3.4 billion. The increase was mainly determined by higher trade deficit as imports soared faster than exports.

The external debt increased by EUR 4.1 billion in the first five months, reaching EUR 103.5 billion at the end of May. The long-term debt, which accounts for over two-thirds of the total external debt, grew by 2.2%, to EUR 69.5 billion, while the short-term debt rose by 8.3%, to EUR 34 billion. The rise was mainly driven by the increase in public debt.

Meanwhile, the non-residents’ long-term deposits in Romania, which are also a part of the external debt, went down to a third of the level recorded at the end of 2018, namely from EUR 2.24 billion to EUR 710 million.

The foreign direct investment totaled EUR 1.49 billion in the first five months, down from EUR 1.66 billion in January-May 2018.

(Photo: Shutterstock)

editor@romania-insider.com