Romania’s exports plunge by 7.5% y/y in August
<p>Romania’s exports contracted by 7.5% y/y to EUR 6.55 bln in August, while imports dropped by 3.0% y/y to EUR 9.43 bln amid a combination of subdued economic activity across Europe and still strong domestic demand at home, according to data published by the statistics office INS.</p>

<p>The trade deficit consequently widened by 9% y/y to nearly EUR 2.9 bln in August.</p>

<p>In the 12 months to August, Romania’s exports contracted by 1.9% y/y to EUR 92.1 bln, 2.8% less compared to the EUR 94.7 bln peak in May 2023.</p>

<p>For the same 12-month period, the country’s imports contracted by only 0.4% y/y and 2.7% compared to May 2023, to EUR 123.7 bln. The domestic demand for consumption and investments prevented sharper contraction.</p>

<p>The trade gap thus increased nominally by 4.3% y/y to EUR 31.6 bln in the 12 months to August 2024.</p>

<p>As a ratio to GDP, however, this was only some 9.3% of GDP, down from 10.1% in August 2023. The nominal GDP in 12 months to June (latest data available) expanded by 12.6% y/y, driven mainly by a significant advance in prices.&nbsp;</p>

<p>In real terms, Romania’s foreign trade (export, import, and even deficit) is shrinking in line with the industrial slowdown in Europe and subdued industrial activity at home.</p>

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

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