Current account deficit up to 14.28% of GDP

The current account deficit is 66.1 percent higher year-on-year, and is due to a significant increase in imports compared to exports, according to data published by Romania’s National Bank (BNR) yesterday. “The figures confirm an unpleasant trend, given that foreign deficit is Romania’s major problem. We will probably witness a depreciation of the leu due to this effect, probably up to RON 4/€1, at some point,” said the President of Chartered Financial Analyst (CFA), Dragos Cabat.

BNR Governor Mugur Isarescu last week warned that a correction of the foreign deficit was inevitable and that a wider correction would lead to further depreciation of the leu.