The share in gross domestic product increased from 6.6% to about 8.3%, practically following the path of the budget deficit, which rose from 5.6% to 8.7% in the same period.
Last year’s external deficit approached that of 2022, when the energy price shock led to a sharp increase in import prices, which was mitigated in 2023. Romania has only had such large external deficits before the economic and financial crisis of 2008-2010.
The deficit in trade in goods reached 32.9 billion euros last year, compared to 29 billion euros in 2023.
The surplus in trade in services narrowed from EUR 13.3 billion to EUR 11.5 billion. The development comes mainly from the decrease in the surplus in the transport sector by over EUR 860 million, to EUR 4.7 billion, and the increase in tourism spending abroad, which led to a deficit higher by EUR 604 million, to EUR 4.3 billion.
The surplus in trade in services narrowed from EUR 13.3 billion to EUR 11.5 billion. The development comes mainly from the decrease in the surplus in the transport sector by over EUR 860 million, to EUR 4.7 billion, and the increase in tourism spending abroad, which led to a deficit higher by EUR 604 million, to EUR 4.3 billion.
The primary income balance also deteriorated, with a deficit of 9.3 billion euros, compared to 8 billion euros in 2023. The development comes mainly against the backdrop of a decrease in net income from employee compensation by about 800 million euros, while net outflows for the payment of public debt held by foreigners increased by 1 billion euros, to 3.6 billion euros.
Dividends paid by companies to foreign shareholders remained almost unchanged, at a net value of 11.6 billion euros. The secondary income balance also deteriorated, with a net value of 1.3 billion euros, compared to 2.2 billion euros in 2023. This includes current private transfers and transfers to the general government.
Foreign direct investment fell from 6.7 billion euros to 5.7 billion euros, of which equity investments accounted for 4.7 billion euros. Total external debt reached 203.6 billion euros, from 183.2 billion euros the previous year.
Intra-group loans, considered foreign direct investment, therefore good debt, had a stock of 49.3 billion euros last year, compared to 47.3 billion euros in 2023. Excluding loans taken by multinational subsidiaries, external debt was 154.3 billion euros last year, compared to 135.9 billion euros in 2023.
Public external debt reached 107.1 billion euros, compared to 91.8 billion euros, as the government continued to rely on external financing to cover the high deficit. Bank debt remained roughly constant at 12.9 billion euros, while private companies’ debt to external creditors increased from 27.9 billion euros to 29.8 billion euros.