Romania’s foreign trade, but also deficit, gains momentum in April
<p>Both exports and imports of Romania increased in April by 14.8% y/y and 17.8% y/y, respectively, as the Easter holiday hit the economic activity in May this year (compared to April in 2023), according to data published by the statistics office INS.&nbsp;</p>

<p>The trade deficit widened, accordingly, by 29% y/y – which is more than proportionally and indicates a deterioration in the country’s external balance consistent with the robust domestic demand (retail sales +14.6% y/y in April, private consumption up 3.5% y/y in Q1).</p>

<p>In the 12 months to April, Romania’s exports decreased by 0.8% y/y to EUR 93.3 billion as the commodity and industrial prices declined. The dwindling industrial activity also contributed.</p>

<p>The country’s imports in the 12-month period contracted by 3.4% y/y to EUR 122.7 billion on lower energy prices (natural gas bill) and subdued industrial activity.</p>

<p>Consequently, the trade deficit in the 12 months to April 2024 contracted by 10.8% y/y to EUR 29.4 billion or 9% of GDP compared to 11.2% in April 2023.&nbsp;</p>

<p>Romania’s trade gap to GDP ratio doubled from 6% in 2016 to 11.9% in 2022 amid various factors, including the war in Ukraine (higher energy prices), but eased afterward to 9.1% as of November 2023 to resume an upward shift driven by domestic demand in the recent period.</p>

<p><em>iulian@romania-insider.com</em></p>

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