Romania's current account deficit surged by 43% year-on-year, reaching 9.5% of the country's GDP in a 12-month period ending in May.
### Romania's Current Account Deficit Expands in 2025
New data published by the National Bank of Romania reveals a significant increase in the country's current account deficit, reaching €12,632 million in the 12 months to May 2025. This figure represents a 43% year-over-year increase and a deterioration of the external balance.
The goods account deficit, which indicates more imports than exports, has remained consistent but narrowed slightly, contributing to the overall current account deficit. The primary income account deficit has widened significantly due to increased outflows of income, likely from repatriated profits and higher dividend payments.
Meanwhile, Romania's services account has shown growth, with an increase in surplus from €930 million in May 2024 to €1,004 million in May 2025. However, this growth has not been sufficient to offset the deficits in other areas. The secondary income surplus has decreased, indicating a reduction in remittances or other secondary income sources, further contributing to the current account deficit.
The FDI accounted for only 1.4% of Romania's GDP in the 12 months to May 2025, a decrease from 2.0% as of May 2024. Net FDI inflows to Romania contracted by 20% year-over-year to €5.1 billion in the same period. Despite the contraction, the strong domestic demand is evident in the net acquisition of tourism services, which increased by 18% year-over-year to €4.8 billion.
The trade deficit in goods widened by 17% year-over-year to €35.1 billion in the 12 months to May 2025. This expansion in the trade deficit, coupled with the widening of the primary income account deficit, has been the primary driver of the current account deficit increase.
To temper the external balance deficit, moderate fiscal consolidation is expected for the second half of 2025. The current account deficit represents 9.5% of Romania's GDP in the 12-month period, up from 9.3% calculated one month earlier and 7.3% one year earlier. The deficit has stimulated private demand through higher public wages and pensions, but the challenge remains to achieve a sustainable balance in Romania's external accounts.
The substantial increase in Romania's current account deficit, reaching €12,632 million, is due in part to a widened primary income account deficit, resulting from increased outflows of income (finance). Meanwhile, the services account showed growth, but the decrease in remittances or other secondary income sources (finance) further contributed to the current account deficit.
