The country’s trade balance deficit widened to EUR3.3 billion in the first half of 2015, after rising 29.4% in June alone, in the context of imports accelerating faster than exports.
Considering the conditions on the Romanian labor market, the lowering of the value added tax to 9% on food items as of June 1, 2015 and the expected cut in the standard VAT rate from 24% to 19% starting January 2016, on the medium term, imports are expected to see “solid” growth, the bank said in a report.
In June alone, exports were at EUR4.77 billion, up 12.4% on the year, while imports rose 14.4% to EUR5.49 billion. The demand for goods made in Romania was good, both in EU and non-EU countries.
The good evolution of exports “might prove an exception,” due to the worsening of consumer confidence in some economies of the eurozone over the last months, and to the difficulties faced by some important trade partners outside the EU, according to the report.
The trade balance situation is no reason for immediate concern, but there are risks on the medium term, according to ING Bank.
Romania’s gross minimum wage was raised from RON900 to RON975 as of January 1, 2015, to RON1,050 as of July 1, 2015 and is expected to be increased to RON1,200 starting January 1,2016.