Romania's current account (CA) deficit narrowed by 12% y/y to EUR 7.98 billion in the first four months of 2026, from EUR 9.1 billion in the same period a year earlier, according to data published by the National Bank of Romania (BNR). The deficit-to-GDP ratio for the first four months of the year dropped to 2.1%, down from 2.5% in the same period last year – in line with the state forecasting body’s expectations for a 1.2 percentage point contraction in the country’s CA deficit from 7.9% in 2025 to 6.7% this year (and 6.0% in 2029).

The improvement was mainly driven by a smaller trade deficit and a higher surplus in services. The deficit in trade in goods declined by almost EUR 700 million to EUR 10.4 billion, while the surplus generated by services increased to EUR 4.8 billion.

At the same time, the primary income deficit, which mainly reflects interest and dividends transferred abroad (even if retained by FDI companies and reinvested as part of the FDI flow), widened to EUR 2.53 billion.

On the downside, foreign direct investment (FDI) weakened significantly during the period. Non-resident direct investment in Romania amounted to EUR 1.53 billion in January-April, compared with EUR 2.23 billion a year earlier, according to the central bank.

Romania's total external debt continued to rise and stood at EUR 229.55 billion at the end of April, around EUR 1.1 billion higher than at the end of 2025.

Long-term debt accounted for nearly 80% of the total, reaching EUR 182.8 billion, while short-term debt declined to EUR 46.8 billion.

Despite the increase in indebtedness, the BNR said the country's international reserves continue to provide comfortable coverage levels. The import coverage ratio improved to 6.2 months of imports of goods and services, compared with six months at the end of last year.

The ratio of international reserves to short-term external debt by remaining maturity stood at 102.8% at the end of April, up from 99.1% at the end of 2025, according to the central bank.

iulian@romania-insider.com

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