Romanians working abroad generate more money than foreign investors

The current transfer balance (made up mostly of funds sent to the country by Romanians working abroad), posted a surplus of €1.8 billion, 9.92 percent higher year-on-year. The inflow of current transfers amounted to €2.74 billion, a 42 percent year-on-year increase.

The revenue balance recorded a €1.92 billion deficit, 56.2 higher year-on-year, while outputs rose more than three times (217 percent) year-on-year, to €947 million in the January-May period, from €298 million in the first five months of 2006.

Meanwhile, the current account deficit coverage through FDI remained idle in May, at 36 percent, compared to April's 36.1 percent. Foreign direct investment amounted to €2.13 billion in the first five months, down 27.5 percent year-on-year.

The current account deficit widened 104 percent year-on-year, to €5.94 billion, during January-May. The main reason was the trade balance deficit, 75.9 percent higher year-on-year (€6.14 billion), according to BNR data.

The service balance recorded a surplus worth €317 million in the January-May period, up 84.3 percent year-on-year. The highest surplus was in the "other services" sector, which nearly doubled, to €528 million. However, the surplus was diminished by transportation and tourism, which widened their deficits to €145 million and €76 million, respectively.

The next two months are likely to further widen the deficit, when there will be a likely lack of balance between Romanians going on holiday abroad and foreigners spending their vacation in Romania.