The breakdown shows that the deficit resulted from the international exchange of goods declined by EUR3.5 billion and the surplus on services expanded by EUR552 million in the first eleven months of 2023.
The primary income balance, which includes compensation of employees, investment income (direct investment, portfolio investment, other investment) and other primary income (taxes, subsidies), recorded a deficit of EUR7.8 billion in January-November 2023, lower by EUR320 million than in the year-earlier period.
The secondary income balance, which includes current private transfers and transfers of the general government, generated a surplus of EUR966 million in January-November 2023, lower by EUR251 million than in the same period of 2022.
Central bank data also show that the largest gap is still recorded by the balance of goods, generating a deficit of EUR25.5 billion at end-November 2023. The services balance recorded a surplus of EUR12.9 billion on the year in January-November 2023. The largest surplus on the services segment came from the transport segment, in the amount of EUR5.4 billion, followed by telecommunications, computer and information services, with a surplus of EUR5.3 billion.
Instead, the tourism-travel segment saw a deficit of EUR3.4 billion in January-November 2023, higher than EUR2.7 billion reported in the same period of 2022.
Foreign direct investment (FDI) stood at EUR6.31 billion in January-November 2023, compared to EUR9.54 billion in the same period of 2022. Of the overall FDI, equity stakes (including estimated net reinvestment of earnings) amounted to a net EUR5.99 billion, while intra-group lending reached a net value of EUR317 million, the data showed.
Romania’s total external debt (public and private) increased by EUR20 billion in January-November 2023 versus the end of 2022, standing at EUR164 billion, central bank also showed on Friday (January 12, 2024). Of the total volume, the external debt stood at EUR118.9 billion and intercompany lending at EUR45 billion. Long-term external debt stood at EUR116 billion on November 30, 2023, accounting for 71.3% of the total external debt, up 18.6% versus December 31, 2022. Short-term external debt stood at EUR47 billion at end-November 2023, up 3.9% versus December 31, 2022.
Long-term external debt service ratio stood at 16.9% in January – November 2023 against 17.9% in 2022. At end-November 2023, goods and services import cover stood at 5.5 months, as compared to 4.4 months on December 31, 2022.
At end-November 2023, the ratio of the National Bank of Romania’s foreign exchange reserves to short-term external debt by remaining maturity came in at 96%, as against 82.4% on December 31, 2022.