Eurostatistics is a synthesis based on a set of standardized and harmonized benchmarks for the comparability between countries at the European level (Principal European Economic… Mai mult›
Romania climbed last year on the penultimate position among the EU member states in terms of the productivity of resources in the economy, after Bulgaria,… Mai mult›
Romania’s economy is becoming more and more vulnerable due to the increasing number of businesses that state no revenues, register losses and debts exceeding their… Mai mult›
Hourly labour cost increased by 15.6% in the second quarter of 2018 compared to the same period of 2017 (+ 9.36%, compared to Q1 2018),… Mai mult›
Fiscal Council, about budget amendment: Increase in revenues from VAT and excise duties has no basis
The Fiscal Council announced on Wednesday, the day when the Government adopted the draft budget amendment without the opinion from CSAT, that it considers the… Mai mult›
de Marin Pana , 18.6.2018
The current account of the balance of payments registered a deficit of EUR 2,053 million in the first four months of this year, about 15% over the same period of the previous year.
The percentage was in decline compared to previous months, after the decrease in the growth rate of goods segment to just 14%, significantly below the values recorded in the previous months.
Unfortunately, the additional contribution by the service segment fell by 5% in the first third of 2018 compared to the first third of 2017, to just EUR 2.417 million, which is why it managed to cover only less than 70% of those -3.483 million recorded on the goods side.
The positive balance of transport services remained at the same level (EUR +1,121 million), while the contribution made by services of processing goods owned by third parties decreased marginally (EUR 849 million compared to EUR 860 million).
Against the background of slightly rising receipts and a significant increase in payments (+ 2% on credit versus + 20% on debit, during the first four months of the year compared to the same period in 2017), the chronic negative balance in tourism increased by 66% compared to the previous year, from EUR -234 million to EUR -388 million.
The deficit recorded by primary income at the beginning of the last year (from work, direct, portfolio investment or other investment, and other primary income such as taxes or subsidies) decreased by more than 20% (from EUR-1.807 million to only EUR -1.453 million) but the trend is not favourable (the decline was -40% at the end of the previous month).
On the secondary earnings segment, where we find the amounts transferred by those working abroad, the positive balance dropped by 12%. Both the amounts sent to the country (from EUR 1,194 million to EUR 1,105 million) and those that went out of the country (from EUR 664 million to EUR 639 million) have been decreasing.
- Evolution of balance of payments in the first four months of 2018 (million euro)
- Period Jan-Apr 2017 Jan-Apr 2018
- credit Debit Balance credit Debit Balance
- Processing services
- Transport services
- Tourism – travel
- Other services
- Primary incomes
- Secondary incomes
- Total current account
The balance of non-residents’ long-term deposits slightly increased in April 2018 and maintained above the level registered at the end of last year (EUR 2,642 million at 30.04.2018 compared to EUR 2,597 million at 31.12.2017). Foreign debt service corresponding to them was EUR 690 million.
Direct investment by non-residents increased between January and April this year by 25% over the same period in 2017 (EUR 1,493 million compared to EUR 1,198 million). Equity contributions (including the net estimated reinvested profit) amounted to EUR 1,945 million and intra-group loans had a negative value of EUR 452 million, nearly double the value from the previous month (overall, local subsidiaries total credited their parent companies).
The total external debt rose by 1.7% in the first four months of 2018 compared to the level recorded at the end of 2017 (down by half a percentage point compared to the previous month) and reached EUR 95,070 million. External debt payments have exceeded EUR 20 billion.
- Evolution of foreign debt balance by components (2013-2018)
- Short-term foreign debt
- Total foreign debt
It is noteworthy the marked difference in the growth rate between the two foreign debt components, with a significant increase in short-term debt (+ 10%) and a decline in obligations committed on long-term (-1.3%). Overall, the extra accumulated debt for the first four months increased by about EUR 1.6 billion.
The medium and long-term external debt service rate was 19.9%, up compared to the end of the previous month (14.4%) but below the level of 23.9% registered in 2017, which in its turn was significantly below the level of 30% recorded in 2016. The goods and services import coverage ratio fell slightly to 5.3 months, down from the end of last year (5.4 months).
The short-term foreign debt coverage ratio, calculated at the residual value (including the capital rates on long-term foreign debt, with maturities in the next 12 months), by the foreign reserves at the BNR, continued to decrease as shown in the table below:
- Evolution of short-term foreign debt coverage ratio, calculated at the residual value
- Month Dec 2015 Dec 2016 Dec 2017 Apr 2018
- Coverage ratio
Lăsați un comentariu
Finance Ministry wants to change rules for insolvency: state could also register claims after procedure is launched
Companies’ possibility to avoid paying creditors (and in particular the payment of tax receivables) simply by declaring their insolvency would be drastically limited, according to… Mai mult›
Prime Minister Viorica Dancila, European Commissioner Phil Hogan and Agriculture Minister Petre Daea The swine fever epidemics in Romania has an impact on neighbouring countries,… Mai mult›
Infrastructure projects lost EUR 41.5 million following budget amendment. In what projects cuts have been made
Despite the assurances that Dancila government is concerned and intensely working on the road infrastructure projects, at the budget amendment the Transport Ministry has cut… Mai mult›
Leaders of the political groups in the European Parliament have decided to adopt in October a resolution on the rule of law in Romania. The… Mai mult›
"Romania's buffers have deteriorated, the country is less prepared for a negative shock" - IMF will reduce economic growth estimate
Romania will be less prepared if the economy is hit by a negative shock, as the structural deficit has been deteriorated - IMF representative for… Mai mult›
Premiere: CSAT asks Finance Ministry to amend amendment - session suspended until Government comes with a draft that does not affect budgets of secret services
President Klaus Iohannis suspended on Tuesday the CSAT meeting for discussing the budget amendment, as there was no consensus on the budgets of institutions from… Mai mult›
Rating agency Standard & Poor's confirmed on Friday ratings for long- and short-term debt in foreign and local currency to "BBB-/A-3" with a stable outlook,… Mai mult›
"Romania’s presidency seems to fail before it starts": Gunther Krichbaum - reaction to anti-German violent statements made by government officials
Romania's presidency of the Council of the European Union seems to fail even before it starts, warns Chairman of the Bundestag European Affairs Committee Gunther… Mai mult›
OMV Petrom sells a quarter of its deposit perimeters to finance potential gas extraction from Black Sea
OMV Petrom (SNP) will sell another 50-60 perimeters from its portfolio of about 200, as most of the company's investments focus on operating the Black… Mai mult›
The number of people who left the country for more than 12 months continued to grow last year, reaching almost 220,000 people (which exceeds the… Mai mult›
The Minister of Justice stirred up the fury of magistrates. 181 prosecutors and judges sent him a letter criticizing Tudorel Toader for his statements about… Mai mult›
MApN announced on Wednesday that Mihail Kogalniceanu Air Base 57 had a ceremony occasioned by the handing over of the Enhanced Air Policing between the… Mai mult›
The Ministry of Public Finance makes a "comparative analysis" of the Tax Code and the Tax Procedure Code with a view to applying a new… Mai mult›
Romania, Hungary and Slovenia are the member states that recorded the largest increase in the share of public sector employees in the total number of… Mai mult›