Romania’s current account (CA) deficit reached EUR 29.9 billion in 12 months to November 2025, which is 7.1% more compared to the previous 12-month period. Currently at 8.2% of the latest available GDP data, the CA is likely to reach 8.0% of GDP in 2025 after the full-year GDP is published – marginally down from 8.2% in 2024.
The moderate improvement in the CA balance mirrors the slight fiscal consolidation: the public deficit, largely responsible for the CA gap, has narrowed marginally from 8.65% of GDP in 2024 to 8.4% or possibly less in 2025. Further fiscal consolidation, but also subdued demand for consumption from the households, are likely to further improve the country’s chronic external imbalance.
The state forecasting body CNP expects the CA gap to shrink to 6.6% of GDP this year, when the public deficit will hopefully reach 6.5% of GDP or less.
The trade deficit in goods was EUR 32.7 billion over the 12 months to November – well above the overall CA deficit. However, it marked 0.9% y/y contraction, driven by subdued consumption.
The surplus in the section of services, EUR 11.7 billion, decreased by 2.6% y/y. The primary and secondary income accounts have both marked significant deterioration: over EUR 900 million each.
The net outflows under the primary income account (interest, dividends of FDI companies) increased by nearly 12% y/y to EUR 9.3 billion (nearly EUR 1 billion more compared to the previous 12-month period), signalling good times for foreign investors. The surplus of the secondary income account collapsed by 73% y/y to just EUR 370 million (down nearly EUR 1 billion from the previous 12-month period).
On the upside, the net foreign direct investments to Romania increased by 56% y/y to EUR 7.25 billion in the 12 months to November. The reinvested earnings, accounting for a large portion of the FDI, edged down by 2.5% y/y to EUR 3.2 billion.
The second largest contribution to the FDI in the 12 months, EUR 2.45 billion (+282% y/y), came in the form of loans from parent groups of the local FDI companies. The new equity contribution was only EUR 1.56 billion, despite the robust 132% y/y expansion that indicates increased confidence of foreign investors.
iulian@romania-insider.com
(Photo source: Romolo Tavani/Dreamstime.com)
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