Romania’s August foreign trade data confirm slower recovery scenario
Romania's exports contracted by 8.1% in August compared to the same month last year to EUR 4.6 billion.
The annual contraction marks a deterioration from the softer 5.1% year-on-year decline in July and does not bode well for the August industrial production figures expected on October 14.
External demand helped the industrial production reduce its annual decline to -6.6% in July, after the deep dive taken in April-May.
Still, August figures are likely to show no further improvement at best, supporting the slower recovery scenario, particularly given the deteriorating epidemiological situation.
Romania's imports in August contracted by only 4.0% year-on-year, the mildest annual contraction since April, to EUR 6.1 bln.
Consequently, the trade gap widened by nearly 15% to EUR 1.26 bln in August.
For the six months since the outset of the pandemic, Romania's exports contracted on average by 21% yoy to EUR 27.1 bln, while the imports decreased by only 16% yoy to EUR 36.0 bln. As a result, the trade gap increased by 5.4% yoy to EUR 8.9 bln.