Romania’s current account on the balance of payments recorded a deficit of EUR 1.97 billion in the first five months of this year, up 14.9% over the same period last year, according to data from Romania’s National Bank (BNR) published on Friday.

The main component contributing to the current account on the balance of payments is foreign trade, which is strongly deficient in Romania.

The trade deficit amounted to EUR 4.47 billion in the first five months of this year, up 18% over the same period in 2016, according to official statistics. As a result, the balance of goods, which is part of the current account on the balance of payments, widened its deficit in the first five months of this year. The current account deficit increased by 16.6% during this period to EUR 4.09 billion.

The primary income balance, which mainly includes dividends repatriated by foreign investors and those received by Romanian investors from abroad, recorded a deficit of EUR 1.34 billion at the end of May, down from EUR 2.16 billion in the same period in 2016. Instead, the service balance reduced its surplus by 6.3% to EUR 2.95 billion in the first five months of 2017.

The secondary income balance, including the European funds received by Romania and personal transfers made by Romanians living abroad, reached a surplus of EUR 507 million after the first five months of this year, 36.7% lower compared to January-May 2016.

In 2016, Romania saw its current account deficit more than double compared to the previous year, reaching EUR 4.1 billion.

editor@romania-insider.com