Romania’s trade deficit surges by 30% yoy in September
Romania's trade deficit increased by 30% in September compared to the same month last year to EUR 1.54 billion.
The exports edged down by 0.5% year-on-year to EUR 6.07 bln, marking a negative annual performance for the seventh month in a row.
However, the imports strengthened by 4.4% yoy - the most robust performance since December 2019, to EUR 7.61 bln.
In the third quarter (Q3) of the year, the trade deficit widened moderately by 1.2% yoy (to EUR 4.38 bln), as the exports recovered partly after the deep dive taken in Q2.
Romanian exports' performance (-4.3% yoy in Q3) has been problematic since before the crisis that pushed them 33.6% down yoy in Q2.
Their recovery to positive growth rates is uncertain, depending on both the recovery in external markets and internal investments.
The imports (-3.2% yoy in Q3), pushed up by the net public spending (budget deficit) and households maintaining certain confidence, are more likely to return to positive growth rates.
The EU funds expected to be absorbed over the coming years represent an opportunity for the local producers to substitute imports and balance the foreign trade balance.
Otherwise, the trade deficit will keep widening, generating rising pressures on the balance of payments and exchange rate once the inflows are discontinued.