Romania’s current account deficit rose 15 pct to EUR 2.05 bln in Jan-Apr; FDI up 25 pct to EUR 1.49 bln

Romania’s current account balance of payment registered a deficit of EUR 2.05 billion in the first four months of this year, up 15 percent compared with January-April 2017, while the foreign direct investment (FDI) increased by 25 percent to EUR 1.493 billion, according to the National Bank of Romania (BNR).

„ The deficit on trade in goods widened by EUR 414 million, the surplus on services income narrowed by EUR 143 million, the deficit of the primary income balance contracted by EUR 354 million, and the surplus of the secondary income balance decreased by EUR 64 million,” the central bank said on Wednesday, in a press release.

Last year, the current account balance of payments registered a deficit of EUR 6.46 billion, or 3.4 percent of GDP.

On the other hand, non-residents’ direct investment in Romania totaled EUR 1.493 billion in the first four months of 2018, compared with EUR 1.198 million in January – April 2017, “of which equity (including estimated net reinvestment of earnings) amounted to EUR 1,945 million and intercompany lending recorded a negative net value of EUR 452 million,” BNR indicates.

Foreign direct investment in Romania rose by 1.5 percent last year, to EUR 4.586 billion.