Romania’s current account (CA) deficit has narrowed by 5.3% y/y to EUR 977 million in January, as the 15% y/y smaller deficit of the trade in goods was fully offset by a wider deficit of the primary income balance reflecting stronger outflows of dividends and interest (and, as the number of foreign workers rises, wages) transferred abroad. 

Romania’s CA deficit improved only marginally to 8.1% of GDP in 2025 from 8.2% of GDP in 2024, and remains one of the major weaknesses for Romania’s macroeconomic balance. 

The stronger secondary transfers, reflecting transfers involving households and the governmental sector,  were the element that eventually resulted in a smaller external CA deficit in the first month of the year.

The deficit of the trade in goods contracted by 15.3% y/y to EUR 2.3 billion from over EUR 2.7 billion in January 2025, as the domestic demand, particularly for consumption, decreased. 

At the same time, however, the net transfers of primary incomes – interest and dividends earned by foreign investors plus the net transfer of wages - deteriorated to a deficit of EUR 25 million from a significant surplus of EUR 505 million in January 2025. Notably, part of the dividends recorded as outflows under this primary account, if reinvested, are also recorded as foreign direct investments, thus financing the current account deficit. The EUR 530 million deterioration in the primary income balance fully offset the EUR 414 million improvement of the trade in goods balance. 

The balance of the secondary income improved to EUR 189 million in January 2026, compared to only EUR 6 million in January 2025. 

iulian@romania-insider.com

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