Romania’s current account (CA) deficit has increased nominally by 4.4% y/y to EUR 30.1 billion in 2025, corresponding to approximately 8.1% of GDP (pending final GDP data), slightly down from 8.2% of GDP in 2024, according to data published by the National Bank of Romania (BNR).

The chronic deficit of the trade in goods has marginally narrowed nominally, but the outflows of dividends, interest, and even remittances have offset this positive trend that is likely to strengthen in 2026 as the domestic demand for consumption remains subdued. The fiscal consolidation, expected at some 2% of GDP this year, is also expected to moderate the country's external deficit.

The trade in goods posted a deficit that was 1.9% smaller compared to that in 2024, still a substantial EUR 32.3 billion. The surplus of the trade in services widened by 3.1% y/y to EUR 12.1 billion. Overall, the trade deficit (goods and services) contracted by 4.7% y/y to EUR 20.2 billion.

The primary and secondary income accounts made a negative contribution to Romania’s CA balance. The outflows under the primary income account (dividends to FDI companies, interest to portfolio investors, and wages earned by foreign workers registered as such) have widened by 22% y/y to a net value of EUR 10.2 billion. The inflows under the secondary income account (transfers to households and public sector) contracted by 59% y/y to EUR 289 million.

On the upside, the inflows of foreign direct investments (FDI) have increased in 2025: by 45% y/y to EUR 8.15 billion in gross terms (2.2% of GDP, up from 1.6% of GDP in 2024)  and by 60% y/y to EUR 7.59 billion in net terms (after the subtraction of the FDI outflows).  

Speaking of the net inflows, the largest part was formed by the reinvested earnings: EUR 4.1 billion (+37.1% y/y). The FDI companies choose to reinvest a larger part of their dividends derived in Romania, as their aggregate gross profit increased by only 7.1% y/y to EUR 11.9 billion. The new equity contributed by FDI investors increased significantly by 75% y/y in 2025, but they remained a small part of total FDI: only EUR 1.5 billion (net terms).

The net borrowing to local subsidiaries of foreign groups increased by 125% y/y to EUR 1.9 billion.

iulian@romania-insider.com

(Photo source: Breeze393/Dreamstime.com)