Romania Insider
Romania’s external debt rises by EUR 7.3 bln in Jan-Nov 2019

Romania’s current account deficit reached EUR 9.9 bln during January - November 2019, up by almost 21% (or EUR 1.7 bln) compared to the similar period of 2018, according to Romania’s National Bank (BNR).

Just over half of the current account was covered by the foreign direct investments and consequently the gross external debt rose by another EUR 7.3 bln, or the equivalent of more than 3% of GDP.

The debt to GDP ratio stayed, however, below 50% of GDP helped by the still robust increase of the GDP.

Non-residents' direct investment in Romania totaled EUR 5.1 bln (compared with EUR 5.0 bln in January - November 2018), of which equity including estimated net reinvestment of earnings amounted to EUR 4.5 bln and intra-group lending recorded a net value of EUR 649 mln.

Broken down by main accounts, the balance of goods made the greatest contribution to the deficit: EUR 15.6 bln or 18.9% up year-on-year (+EUR 2.5 bln ). The surplus of trade with services (net export) edged up by only 1.8% year-on-year (+EUR 135 mln) to EUR 7.8 bln and financed roughly half of the net import of goods.

The balance of primary incomes registered a smaller deficit (-13%, or -EUR 484 mln year-on-year), namely EUR 3.2 mln and they account broadly for the profit generated by the capital poured by foreign investors and to a smaller extent the wages earned by foreign employees.

The balance of secondary incomes posted a 15% stronger in January-November compared to the same period last year, EUR 1 bln, and stand for the net transfers including from the European Commission.

(Photo: Shutterstock)

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For a decade, Romania Insider has been your platform of choice for reliable information on all things Romania. We have always been proud of our ability to bring you bias-free reporting but this hasn't always been easy. We have been thinking about making some changes and can't imagine doing this without your feedback.
For this, we would appreciate it very much if we could borrow 2 minutes of your day to fill out this survey. 
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Romania Insider
Romania’s external debt rises by EUR 7.3 bln in Jan-Nov 2019

Romania’s current account deficit reached EUR 9.9 bln during January - November 2019, up by almost 21% (or EUR 1.7 bln) compared to the similar period of 2018, according to Romania’s National Bank (BNR).

Just over half of the current account was covered by the foreign direct investments and consequently the gross external debt rose by another EUR 7.3 bln, or the equivalent of more than 3% of GDP.

The debt to GDP ratio stayed, however, below 50% of GDP helped by the still robust increase of the GDP.

Non-residents' direct investment in Romania totaled EUR 5.1 bln (compared with EUR 5.0 bln in January - November 2018), of which equity including estimated net reinvestment of earnings amounted to EUR 4.5 bln and intra-group lending recorded a net value of EUR 649 mln.

Broken down by main accounts, the balance of goods made the greatest contribution to the deficit: EUR 15.6 bln or 18.9% up year-on-year (+EUR 2.5 bln ). The surplus of trade with services (net export) edged up by only 1.8% year-on-year (+EUR 135 mln) to EUR 7.8 bln and financed roughly half of the net import of goods.

The balance of primary incomes registered a smaller deficit (-13%, or -EUR 484 mln year-on-year), namely EUR 3.2 mln and they account broadly for the profit generated by the capital poured by foreign investors and to a smaller extent the wages earned by foreign employees.

The balance of secondary incomes posted a 15% stronger in January-November compared to the same period last year, EUR 1 bln, and stand for the net transfers including from the European Commission.

(Photo: Shutterstock)

[email protected]

Normal

For a decade, Romania Insider has been your platform of choice for reliable information on all things Romania. We have always been proud of our ability to bring you bias-free reporting but this hasn't always been easy. We have been thinking about making some changes and can't imagine doing this without your feedback.
For this, we would appreciate it very much if we could borrow 2 minutes of your day to fill out this survey. 
Thank you for reading Romania Insider!  

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