Deficit growth slows down in May

The current account deficit grew by a mere 15% in May against the same month last year, compared with a 57% increase in the first four months of the year. This can be explained by the increase in the current net transfers (money sent by Romanians working abroad), to 382 million euros, against an average of 218 million euros in the first four months of the year. However, foreign investments saw their growth rate plummet, to 20%, starkly contrasting with the 130% in the first four months of the year. As a result, the current account deficit of the balance of payments reached 3.33 billion euros in the first five months of the year, a 53% increase against the same period of 2005. Foreign direct investments totalled 2.9 billion euros in the first five months, a 93% rise against the same period of the previous year. The trade deficit is the main reason for the foreign deficit, data from the National Bank of Romania show. In the first five months, the trade deficit totalled 3.46 billion euros, a 37% increase against the same period of last year.