Current account deficit above 3% of 2004 GDP

In the first seven months of this year, the current account deficit reached 1.75 billion euros, 23.6% higher as compared to the same period for last year, representing almost 3.2% of the GDP expected for this year (55 billion ROL). The Government and the National Bank of Romania pledged in negotiations with the International Monetary Fund to contain the current account deficit at 5.5% of GDP for this year, 0.4% lower than in 2003. From January to July 2003, the current account deficit reached 1.42 billion euros, or 2.8% of GDP. According to the NBR, the trade balance deficit increased in July, but the pace of growth was followed closely by that of current transfers, meaning that in one month only, foreign currency transfers to Romania totalled 300 million euros, only 50 million euros lower than the deficit of the foreign trade in goods and services. ZF