Romania’s current account deficit increased by 38% in the first four months of the year, to EUR 2.3 billion, compared to EUR 1.66 billion in January-April 2018, amid a deterioration of the balance of trade with goods, according to data from the central bank BNR. At the end of the first quarter, the deficit stood at EUR 1.2 billion.

The balance of trade with goods (net imports of goods) recorded a deficit of EUR 4.9 billion after the first four months, up by EUR 1.27 billion compared to the same period last year, as a large share of the rising consumption is fed by imports. The net export of services, EUR 2.55 billion in the four months, decreased by EUR 34 million from last year.

At the same time, the balance of primary incomes registered a deficit of EUR 368 million, down by EUR 817 million, and the balance of secondary earnings registered a surplus of EUR 423 million, down by EUR 151 million compared to January-April 2018.

BNR data also shows that non-residents’ direct investment in Romania amounted to EUR 1.32 billion (compared with EUR 1.59 billion in January-April 2018), out of which equity investment (including the net reinvested earnings) amounted to EUR 938 million, and the intra-group loans recorded a net value of EUR 385 million.

editor@romania-insider.com

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