$1.1bn capital inflows

Nine months through this year and the current account deficit is still below one billion dollars, although this threshold had been crossed in July, when it reached $1,050 million. Romania was registering $957 million current account deficit by late September, 22% lower than in the same time last year. The massive capital inflows, which no one knows much about, could sustain the current account and see it end the year with a deficit of up to $1.5bn. The deficit in September went up by only $20 million, given that the $129 million increase in the trade deficit was outstripped by the inflows derived from transfers, which rose $162 million. Transfers in the first nine months accounted for $1.133bn, that is 39% more than in the same time in 2001. This source of cash – most of which sent by the Romanians working abroad, does not seem to come to a standstill; on the contrary it keeps progressing at $50-$60 million a month. ZF