The current account of the balance of payments recorded a deficit worth 5.924 billion euros over the first eight months of the year, up 51% against the corresponding period of last year, mainly because of increases in the trade deficit, the NBR said yesterday.
Trade triggered a deficit worth 6.482 billion euros in the first eight months of 2006, rising by 51.8%, compared with the same period of last year.
The service sector witnessed a surplus, amounting to 269 million euros, although the transportation sector posted a deficit of 177 million euros. The tourism segment also posted a slight surplus, worth 30 million euros.
The current account recorded rising deficits in the revenue sector as well, with the profits reinvested by non-residents two years ago being included as outflows. The negative balance rose by 20.6% over the quoted period, to 2.029bn euros.
Current transfers stood at 2.318bn euros, exceeding the level of 2.165bn euros reached during the same period last year.
"The current account deficit was 73.1% covered through foreign direct investment (4.3bn euros between January 1 - August 31, 2006, against 2.7 billion euros in the corresponding period of 2005)," reads a press release issued by the NBR. According to the preliminary autumn forecast made by the National Forecast Commission, this year's current account deficit will stand at 8.7% of GDP, equal to the level posted last year, but exceeding the value of 8.5% projected early this year.
The value of the current account deficit projected for this year has been revised upwards, from 7.95 billion euros to 8.25 billion euros. The NBR also announced that Romania's eight-month medium and long-term foreign debt stood at 25.837 billion euros, up 5.1% against the 24.588 billion euros posted on December 31, 2005.
The public and publicly-secured foreign debt was worth 10.923
