Imports increased twice as fast as exports in H1 2007, according to the National Statistics Institute (INS). The high demand for new cars was one of the reasons for the higher trade deficit. Car imports rose significantly in H1, according to INS data. The registration of new personal cars rose 41.3 percent year-on-year, while registration of goods transportation vehicles increased 37.7 percent. Half of these registrations are imported cars.
The rise in overall imports was 21 percent, when calculated in lei, and 28.3 percent in euros.
Exports also increased, but less so than previously expected by the National Commission for Prognosis (CNP). The rise in exports was 4.9 percent, when calculated in lei, and 11.3 percent in euros. The difference in percentage results is due to the exchange rate. The leu’s constant appreciation in H1 made has made Romanian products less competitive on foreign markets and imports more competitive on the local market. According to INS, this currency appreciation during the January-June period (between 3.9 and 9.1 percent year-on-year) is the main cause of the higher deficit.
Decrease
Oil product exports dropped by half and clothing exports also dropped significantly in H1. These fields registered the lowest industrial productivity (a 15.4 percent drop for oil products and an 18 percent drop for clothing, year-on-year).
