Romania’s 12-month trade gap hits 11.9% of GDP

Romania’s 12-month trade gap hits 11.9% of GDP
/ bne IntelliNews
By bne IntelliNews October 11, 2022

Romania’s foreign trade gap soared by 86% y/y to €3.2bn in August, remaining above €3bn for the second month in a row, according to data from the statistics office INS. Exports increased by 34% y/y to €7.6bn, while imports advanced faster, by 47% y/y to €10.8bn.

For the 12 months ending July, the trade gap reached €31.1bn (11.9% of GDP) 44.5% up from €21.5bn (9.4% of GDP) in August 2021.

As well as reflecting global inflation, Romania’s trade gap is rising in real terms, as is the deficit-to-GDP ratio.

The trade data for July and August, combined with slower economic growth, are likely to cause the external balance to deteriorate further.

The trade deficit (goods) in Q2 reached 10.1% of the total domestic demand for consumption, investments and inventory — up from 8.8% in the same period last year. For the four quarters ending June, the ratio was 9.7% — up from 8.5% one year earlier and 8.2% two years earlier.