Romania’s exports keep recovering, but trade gap surges in September

Romania’s exports keep recovering, but trade gap surges in September
By bne IntelliNews November 10, 2020

Romania's trade deficit increased by 30% y/y to €1.54bn in September, despite the robust performance of exports that marked a thin annual decrease of only 0.5%.

Exports edged down by 0.5% y/y to €6.07bn, marking a negative annual performance for the seventh month in a row.

In contrast, the imports strengthened by 4.4% y/y — the strongest performance since December 2019, to €7.61b.

In the third quarter of the year, the trade deficit widened moderately by 1.2% y/y to €4.38bn, as the exports recovered partly after the deep dive taken in Q2.

The performance of Romanian exports (-4.3% y/y in Q3) has been problematic since before the crisis that pushed them 33.6% down y/y in Q2.

Their recovery to positive growth rates is uncertain, depending on both the recovery in external markets and domestic investments.

The imports (-3.2% y/y in Q3), stimulated up by the net public spending (budget deficit) and by households maintaining certain confidence, are more likely to return to positive growth rates.

 

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