Romania's current account deficit up 56% in first four months

Romania’s current account on the balance of payments recorded a deficit of EUR 1.4 billion in the first four months of this year, up 56.3% over the same period last year, according to data from Romania’s National Bank (BNR). The main component contributing to the current account on the balance of payments is foreign trade, which is strongly deficient in Romania. As a result, the balance of goods, which is part of the current account on the balance of payments, widened its deficit in the first four months of this year, to EUR 3.13 billion. Meanwhile, the service balance reduced its surplus by 1.5%, to EUR 2.45 billion in the first four months of 2017. The primary income balance, which mainly includes dividends repatriated by foreign investors and those received by Romanian investors from abroad, recorded a deficit of EUR 1.06 billion in the first four months, down from EUR 1.5 billion in the same period in 2016. The secondary income balance, including the European funds received by Romania and personal transfers made by Romanians living abroad, reached a surplus of EUR 318 million after the first four months of this year, 57% lower compared to January-April 2016. In 2016, Romania saw a 112% increase of its current account deficit compared to the previous year, reaching EUR 4.1 billion. Romania’s total external debt reached EUR 94.1 billion at the end of April, up 1.8% over December 2016. editor@romania-insider.com