Romanian exports thrive

Exports in July exceeded the $1bn threshold for the second month in a row, while imports maintained the decreasing trend, following the 10.5 percent correction in June. Under these circumstances, the FOB/CIF trade deficit hit a record low for the past four months, down to 272 million dollars, but it did not manage to break the record attained in March, namely 228 million dollars.

Nonetheless, the deficit accumulated over the first seven months of the year exceeded 2.3 billion dollars, putting a high pressure over the current account.

For the first seven months of the year, exports totaled 6.7 billion dollars, up 15.4 percent as compared to the year-ago period, while imports were worth over nine billion dollars, having increased by almost 27 percent as compared to last year’s level.

The evolution posted by foreign trade over the past two months seems to point to an ideal trend – constant increase of exports, paralleled by a decrease in imports, but this trend might only be temporary.

If August brings no change, the trade balance will sport an equilibrium that could lessen the tension affecting the current account, which stole the spotlight during discussions between Romanian authorities and the International Monetary Fund delegation to Bucharest.

Financial analysts feel that the year 2001 is very likely to end with a deficit amounting to 4.5-5 billion dollars, which is quite difficult to support.

Considering the merchandise structure of exports, the highest increase, namely 42%, was posted over the first seven months of the year by the category of mechanical machines and devices and electrical machines and devices.

The top of imports is ruled by mineral products (ore, crude, oil products and natural gas), with more than 35% weight, followed by metallurgic products.