Romania’s trade deficit up 18.4% yoy in Jan-Oct

11 December 2019

Romania’s trade deficit (goods only) widened by 18.4% year-on-year in the first ten months of the year compared to the same period in 2018, to EUR 14.0 billion (6.5% of GDP), the statistics office INS informed.

The imports increased by 4.6%, to EUR 72.2 bln, while exports advanced at a slower pace of 1.7%, to EUR 58.2 bln.

For the entire January-October period, the trade deficit increased by EUR 2.1 bln, almost 1% of GDP, compared to the trade deficit in the same period last year.

The exports of beverages and tobacco soared by nearly one third: 30.3% year-on-year in value terms, while the exports of live animals surged by 10.6% as well. In contrast, exports of mineral fuels, lubricants and derivatives decreased by 8.6%.

Of all the product categories, the largest increase in imports was recorded for mineral fuels, lubricants and derived materials from the EU, up 35%.

"Notably, the deficit of the balance of trade with goods with the EU countries increased by 20.3% year-on-year to EUR 9.2 bln,” commented Andrei Rădulescu, head of macroeconomic research at country’s largest lender Banca Transilvania.

According to the baseline macroeconomic scenario of Banca Transilvania (BT), the annual growth rates of exports and imports (goods and services) could decelerate to 4.1%, respectively 7.3% in 2019 (from 5.4% and 9.1% respectively in 2018), under the impact of external (challenging international trade) and internal (deteriorating competitiveness) factors. In 2020-2021, BT expects total exports and imports to increase by average annual rates of 4.8% and 6.7% respectively, a visible improvement in terms of both exports and imports compared to 2019, assuming certain depreciation of the local currency in real effective terms and the re-balancing of the domestic economic policy.

editor@romania-insider.com

(Photo source: Pixabay.com)

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Romania’s trade deficit up 18.4% yoy in Jan-Oct

11 December 2019

Romania’s trade deficit (goods only) widened by 18.4% year-on-year in the first ten months of the year compared to the same period in 2018, to EUR 14.0 billion (6.5% of GDP), the statistics office INS informed.

The imports increased by 4.6%, to EUR 72.2 bln, while exports advanced at a slower pace of 1.7%, to EUR 58.2 bln.

For the entire January-October period, the trade deficit increased by EUR 2.1 bln, almost 1% of GDP, compared to the trade deficit in the same period last year.

The exports of beverages and tobacco soared by nearly one third: 30.3% year-on-year in value terms, while the exports of live animals surged by 10.6% as well. In contrast, exports of mineral fuels, lubricants and derivatives decreased by 8.6%.

Of all the product categories, the largest increase in imports was recorded for mineral fuels, lubricants and derived materials from the EU, up 35%.

"Notably, the deficit of the balance of trade with goods with the EU countries increased by 20.3% year-on-year to EUR 9.2 bln,” commented Andrei Rădulescu, head of macroeconomic research at country’s largest lender Banca Transilvania.

According to the baseline macroeconomic scenario of Banca Transilvania (BT), the annual growth rates of exports and imports (goods and services) could decelerate to 4.1%, respectively 7.3% in 2019 (from 5.4% and 9.1% respectively in 2018), under the impact of external (challenging international trade) and internal (deteriorating competitiveness) factors. In 2020-2021, BT expects total exports and imports to increase by average annual rates of 4.8% and 6.7% respectively, a visible improvement in terms of both exports and imports compared to 2019, assuming certain depreciation of the local currency in real effective terms and the re-balancing of the domestic economic policy.

editor@romania-insider.com

(Photo source: Pixabay.com)

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