Compared to May 2024, the current account deficit increased by EUR2.4 billion in June 2024.
The breakdown shows that the balance of goods had a deficit of EUR15 billion in the first six months of 2024, higher by EUR1.86 billion compared to the end of June 2023, and the surplus on the balance of services shrank by EUR1.06 billion on the year to EUR6.1 billion.
In terms of services, the telecommunications, computer and information services ended the first half of 2024 with the biggest surplus, of EUR2.9 billion, slightly lower, however, than in the same period of 2023, while the tourism-travel segment had a surplus of EUR2.7 billion, lower than in the year-earlier period. At the same time, the deficit in the tourism-travel sector widened to EUR2.2 billion, compared with EUR1.6 billion in the first six 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 EUR4.2 billion, higher by EUR603 million on the year.
The secondary income balance, which includes current private transfers and transfers of the general government, generated a surplus of EUR957 million in January-June 2024, compared with EUR511 million at the end of June 2023.
Foreign direct investment (FDI) stood at EUR3.21 billion in January-June 2024, compared to EUR2.8 billion in the same period of 2023. Of the overall FDI, equity stakes (including estimated net reinvestment of earnings) amounted to a net EUR3.7 billion, while intra-group lending reached a net value of -EUR490 million, the data showed.
Romania’s total external debt (public and private) increased by EUR6.77 billion in January-June 2024 versus December 31, 2023, standing at EUR176.8 billion, central bank also showed on August 13. Of the total volume, the external debt stood at EUR132.9 billion, higher by EUR8.91 billion, and intercompany lending at EUR43.8 billion, lower than EUR46 billion on December 31, 2023. Long-term external debt stood at EUR130.6 billion on June 30, 2024, accounting for 73.9% of the total external debt, up 7.3% versus December 31, 2023. Short-term external debt stood at EUR46.1 billion (accounting for 26.1% of the total external debt) on June 30, 2024, down 4.4% compared to the level on December 31, 2023.
Long-term external debt service ratio stood at 16.4% in June 2024 against 16.7% in 2023. On June 30, 2024, goods and services import cover stood at 6.1 months, as compared to 5.6 months on December 31, 2023.
On June 30, 2024, the ratio of the National Bank of Romania’s foreign exchange reserves to short-term external debt by remaining maturity came in at 110%, as against 96.3% on December 31, 2023.