Romania’s CA balance not changed in Q1 compared to last year
<p>The current account (CA) of Romania remained roughly unchanged in nominal terms (EUR 3.95 billion) in the first quarter of the year (Q1) compared to the same period in 2023, according to data published by the National Bank of Romania (BNR).</p>

<p>The CA deficit in 12 months to March 2024 (EUR 22.6 billion) remained roughly constant compared to the end of 2023 and a significant 8% down from EUR 24.7 billion at the end of March 2023. The CA to GDP ratio dropped to 7.1% in 2023 from 9.1% in 2022 and is expected to further ease, albeit at a slower rate over the coming years.&nbsp;</p>

<p>In Q1 this year, Romania’s wide deficit in the trade with goods remained rather constant compared to the same period last year, at EUR 6.6 billion. The traditional surplus in the trade with services narrowed by 12% y/y to EUR 3.33 billion, resulting in a slightly wider negative balance of the overall foreign trade (EUR 3.25 billion, +16% y/y).&nbsp;</p>

<p>The net inflows of foreign direct investments (FDI) to Romania contracted to EUR 6.42 billion in 12 months to March 2024, 22% less y/y. Out of this, EUR 1.26 billion (-64% y/y) was fresh equity, EUR 4.99 billion (-13% y/y) was reinvested profit, and the FDI companies received EUR 172 million loans from parent groups compared to €1.7bn in the previous 12-month period.&nbsp;</p>

<p>The drop in overall FDI was thus general but particularly high in terms of debt.</p>

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

<p><em>(Photo source: <a href="https://www.dreamstime.com/" rel="noopener" target="_blank">Vlad Ispas/Dreamstime.com</a>)</em></p>