The current account (CA) deficit in the 12 months to April 2025 increased by 46% y/y and reached EUR 33.4 billion, according to data published by the National Bank of Romania (BNR) on June 13.

The CA deficit to GDP ratio reached 9.4%, from 7.1% in April 2024 and 8.4% in 2024.

All the main elements of the CA balance have deteriorated in the 12 months to April compared to the previous 12 months – even the surplus of services has decreased by 6% y/y to EUR 11.8 billion.

The trade deficit in goods, at EUR 35.5 billion over the 12 months to April, has widened by 21% year-over-year (y/y), or EUR 6.9 billion, accounting for the largest part of the EUR 10.4 billion CA deterioration in the country’s external balance.

Notably, the surplus in the secondary account – which stands for transfers to the household or government sectors – has nearly vanished (-99% y/y) to a symbolic EUR 31 million from EUR 2.5 billion in the previous 12 months. Particularly the inflows to the government sector contracted by 66% y/y as the absorption of EU funds remains modest, and the outflows to the household sector rose by 10% y/y as the number of foreign workers sending money back home is slightly but constantly increasing.

The wage remittances declared as such brought Romania a net EUR 3.5 billion (-5.6% y/y) in the 12 months to April, as outflows remained below EUR 0.5 billion (+6.0% y/y). But, also in the category of primary incomes, the net outflows generated by foreign investments increased by 7.8% y/y to EUR 15.6 billion in the 12-month period, mainly driven by the EUR 11.8 billion dividends generated by the foreign direct investment (FDI companies) – with a capital of some EUR 125 billion. The interest generated by the portfolio investments surged by nearly 40% y/y to nearly EUR 4.0 billion.

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iulian@romania-insider.com