Romania’s trade deficit in USD had gone beyond three billion dollars by late July, following an about 40% increase in the first seven months of the year compared with the same time in 2002. The full-year deficit reached $3.9bn in 2002.
Imports throughout January-July were well above $13bn, which accounts for an about 34% increase from last year. Although still on their way up, exports find it hard to keep up, having generated revenues of $9.9bn by late July.
The upward deficit trend would be no reason for concern if there were financing sources available to lessen the gap of the trade balance to such extent that it would no longer put too heavy pressure on the current account. The central bank does not seem very concerned about the worsening trade deficit for the time being and focuses on the inflation-curbing goal, instead. The import growth, however, has already pushed for the decision to increase the currency reserve, which should go up to some 7.5bn euros to cover the bill for four months of imports.
The forex market is already faced with serious foreign currency shortages that amounted to about 140 million euros in the last two weeks of last month. The fall could make the foreign currency shortage even more serious, particularly because of the upcoming major energy imports.
The trade deficit picture is somewhat less alarming if mirrored in the euro, all the more so since a slight downward trend from the April-May peaks surfaced in June and July. Trade deficit had exceeded half a billion euros in April and May.
The trade balance deficit throughout January-July amounted to 2.74bn euros, given that imports totalled 11.73bn euros, up 9.9% and exports rose 8.5% to 8.99bn euros.
Imports in July remained ahead of exports, albeit the goods that left the country were 17.7% more valuable, while those bought from abroad were only 9.9% more valuable.
Subsequently, Romania exported 1.49bn euros’ worth in goods (FOB prices) and imported 1.92bn’s worth (CIF prices).
Top exported products were clothing and textiles – 25.4%, i.e. 2.28bn euros, followed by mechanical and electrical devices – 15.7%, i.e. 1.9bn euros. Next in line were metallurgical products -12.7% and mineral products (salt, cement, oil products) – 8.2%.
As for imports, mechanical and electrical plant and equipment accounted for the bulk – 23%, i.e. 2.7bn euros. Romania also imported clothing and textiles worth 1.9bn euros (16.3%) and 1.46bn euros (12.5%) in mineral products.
The European Union countries remained the primary destination for Romania’s exports, having attracted 68.2% of the total volume. razvan.voican@zf.ro