Romania’s current account deficit narrows down to EUR 2.11 bln

Romania recorded a current account deficit of EUR 2.11 billion in the first eight months of this year, down from EUR 2.16 billion in the first seven months, according to Romania’s National Bank (BNR). However, the deficit increased 5.5 times compared to the same period of last year, when it was only EUR 382 million. The current account includes the amounts received and paid by Romania in the trade relations with other states. The main component that contributed to the current account deficit is the foreign trade, which has a strong deficit. The commercial deficit in the first eight months of the year amounted to EUR 6.13 billion, up 28% over the same period in 2015. As a result, the balance of goods, which is part of the current account of balance of payments, accelerated its deterioration this year. The trade deficit of the current account component increased by 30.6% in the first eight months of this year to EUR 5.69 billion, compared with the same period in 2015. The balance of primary income, which mainly includes dividends repatriated by foreign investors, recorded a deficit of EUR 2.84 billion in the first eight months, up 2.9% compared to January-August 2015. In contrast, the balance of services increased its surplus by 11.3% to EUR 5.02 billion between January and August this year. The balance of secondary income, which includes European funds received by Romania and personal transfers made by Romanians abroad, recorded a surplus of EUR 1.41 billion, down 16% over the same period last year. editor@romania-insider.com