Current Account Deficit Shrinks To EUR634M In First Quarter

05.16.2011 By Andrei Circhelan

Romania registered a current account deficit of EUR634 million in the first quarter, narrower than EUR1.5 billion in the year-earlier period, the central bank said Monday.

However, the external gap accelerated in May from EUR44 million at the end of February, fueled by a wider trade deficit.

The trade balance posted a deficit of EUR455 million, from EUR1.287 billion in January-March 2010. Moreover, the current transfers surplus rose to EUR729 million in the first three months from EUR434 million in the same period a year ago.

Foreign direct investment of EUR379 million covered almost 60% of the current account deficit.

Romania's total external debt reached EUR93.4 billion at the end of March, up from EUR90.9 billion in December 2010, according to central bank data.

The medium and long-term debt stood at EUR74.3 billion, from EUR72.5 billion at the end of 2010. The short-term debt was at EUR19.1 billion, from EUR18.4 billion in December last year.