Romania 2007 Curr Acct Gap Widens 66.1% YY

The country’s current account deficit reached 14.28% of the EUR118.06 billion gross domestic product estimated for 2007, in line with analysts’ expectations, who saw the deficit at around 14% of GDP.

The Romanian authorities have forecast last year’s current account deficit at 13.4% of GDP, or EUR15.8 billion.

In 2007, the trade deficit, with exports and imports calculated on a free-on-board basis, widened 49.6% on the year to EUR17.58 billion from the EUR11.75 billion deficit posted in the year-earlier period.

Services posted a slight surplus of EUR265 million last year, up from EUR4 million in 2006. Current account transfers registered a surplus of EUR4.85 billion, a notch up compared with EUR4.84 billion in 2006.

Last year, the current account gap was 41.9% covered by foreign direct investments, which totaled EUR7 billion at the end of December.

Romania cumulated EUR7.5 billion in foreign debt in 2007. The country’s total foreign debt stands at EUR36.7 billion.