Romania’s current account deficit deepened by 17% in 2019 compared to 2018, to EUR 10.47 bln, according to data released on February 13 by Romania’s National Bank (BNR).

The deficit to GDP ratio edged up slightly close to 4.8%.

The net import of goods reached EUR 17.3 bln, 17% more than in 2018, making the strongest contribution by far to both the current account deficit in 2019 and the annual rise from 2018. The deficit in the trade with goods widened by EUR 2.55 bln, while the CA deficit widened by EUR 1.52 bln.

In the area of services, the EUR 4.3 bln surplus of international transport services plus the EUR 2.8 bln export of manufacturing services offset the EUR 2.1 bln deficit in the tourism area and resulted in a positive balance of EUR 8.55 bln, up 2.3% year-on-year.

At the same time, the balance of primary incomes registered a deficit of EUR 3.2 bln, down 14% year-on-year, and the balance of secondary incomes recorded a surplus of EUR 1.5 bln, up by 24% year-on-year.

Romania’s total external debt went up by EUR 6 billion (or 6%) in 2019, to EUR 106 billion. The increase of direct public debt in 2019 came mainly from the Eurobonds issued by the Finance Ministry, worth EUR 5 billion, and revaluations due to price changes of the securities issued by the Government, worth around EUR 2.23 billion, diminished by the repayments related to direct public debt, amounting to EUR 3.1 billion, according to BNR.

editor@romania-insider.com

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