WB: Romania ranks 12th in terms of current account deficit

Romania ranked 12th worldwide in 2005, in terms of the size of its current account deficit, according to a report of the World Bank (WB), which was published on Monday. The current account deficit, which gauges net foreign currency outflows from the country, stood at 6.9 billion euros in 2005, placing Romania 12th in the world ranking. In 2006, Romania’s foreign deficit increased by 45% to 9.97 billion euros. In fact, the current account deficit is the biggest problem of Romania’s economy, as stated both by the authorities, through the National Forecast Commission, and by international institutions, which say that the deepening of the current account deficit could have a negative effect on the exchange rate in the near future. The increase in foreign deficit is estimated to be between 22%-45% this year, according to reports from banks and other international financial institutions, with the most optimistic estimate coming from the Forecast Commission – 22% deficit (12.15 billion euros).