Romania recorded a modest improvement in its external balance in the first two months of 2026, as the current account (CA) deficit narrowed to EUR 3.19 billion, from EUR 3.64 billion in the same period of 2025, according to data published by the National Bank of Romania (BNR) on April 15.
The improvement was mainly driven by a EUR 932 million reduction in the goods trade deficit. However, this was partly offset by a weaker services surplus (down EUR 225 million), a wider primary income deficit (up EUR 251 million), and a slight increase in the secondary income deficit (up EUR 9 million).
Amid still wide CA deficits despite the relative improvement, Romania’s external debt continued to rise. Total external debt increased by EUR 1.5 billion to EUR 229.96 billion at the end of February.
Long-term debt accounted for 79.4% of the total (EUR 182.5 billion), posting a slight increase, while short-term debt declined to EUR 47.4 billion, representing 20.6% of total external debt.
Key sustainability indicators showed some improvement. The long-term external debt service ratio fell to 12.9% in January–February 2026, from 18.4% in 2025. Meanwhile, foreign exchange reserves provided stronger buffers, with import coverage rising to 6.7 months (from 6.0 months at end-2025) and coverage of short-term external debt (at residual maturity) increasing to 107.3% (from 104.4%).
Foreign direct investment (FDI) also picked up, reaching EUR 1.13 billion in the first two months of the year, compared to EUR 854 million in the same period of 2025. Equity investments, including reinvested earnings, totalled EUR 1.18 billion, while intragroup loans recorded a negative net value of EUR 52 million.
Overall, while external imbalances show signs of easing, rising debt levels remain a key vulnerability for Romania’s macroeconomic outlook.
iulian@romania-insider.com
(Photo source: Vlad Ispas/Dreamstime.com)
Leave a Reply