SIMILAR ARTICLES

Romania as a market. How important we are to Hungary, Poland, Slovakia

According to data published by the National Institute of Statistics, Romania’s trade exchanges with Hungary, Poland and Slovakia caused almost 43% of the deficit registered… Mai mult

Public pension systems in EU – Bismarck versus Beveridge. Romania: “Sure ain’t no one like us”

European countries have quite diverse pension systems in terms of financing methods but basically based on two models, Bismarck and Beveridge. The former is mostly… Mai mult

“Captivity effect”: Competition Council’s recommendations for institutions not to become dependent on providers who win tenders in IT and health sectors

Authorities are often dependent on a single vendor or distributor, mainly in the acquisition of software developed on demand and medical devices, is the conclusion… Mai mult

Cristian Grosu / Foreign policy for personal use: two dangers that are threatening Romania

The game is, of course, very complicated. But not necessarily from Romania’s point of view. Until the clarification, among the uncertainties of the future, of… Mai mult

Romania of investments in a European context: On the list of declines, but still ranking in the first third of it

Last year, total investment at the national level (both from the public and private sources) in the EU member states amounted to almost EUR 3,100… Mai mult

Monthly trade deficit surges again over one billion euro

de Marin Pana , 14.5.2018

The trade deficit in March 2018 exceeded again the threshold of EUR 1 billion after the values in the first two months were significantly lower.

However, the amount of EUR 1,056.7 million was only 1.6% higher than in the same month of the previous year, which halved the growth rate of the deficit cumulated since the beginning of the year (18% compared to 35 % at the end of February).

The good news is that monthly exports have exceeded, for the first time, EUR 6 billion.

The less good news is that imports exceeded, also for the first time, EUR 7 billion euro and the “score” of the increases was again slightly unfavourable to exports compared to the evolution of imports (9.8% versus 10.8% with the observation that the second value was applied to a bigger starting basis).

The import coverage ratio by exports was 89.9%, which was slightly better than in 2016 and 2017 but below the values recorded between 2013 and 2015 (see table). For the attempt of recovering to the level above 90% and the relatively good practices of four or five years ago to succeed, we should export a little more and/or import less in the consumer goods area.

*

  • Evolution of import coverage ratio by exports between 2009 – 2018
  • Year
  • FOB/FOB coverage

*

As we can see from the situation of the last 15 months, we have seen growth rates of imports of two figures or very close to 10% since May 2017 (August-September 2017), while about half of exports had growth rhythms of a single digit and half had two-digit growths.

With the note that we succeeded to have the biggest positive gap in March 2017 between the increase in exports and the increase in imports.

*

  • Foreign trade between January 2017 – March 2018 (million euro)

*

Situation on intra- and extra-EU and picture by sectors

For the first three months of 2018, trade with the EU countries amounted to about EUR 13 billion in exports and EUR 14.85 billion in imports (76.6% of total exports and 75.4% of imports). In the extra-EU trade segment, exports amounted to almost EUR 4 billion and imports EUR 4.85 billion (23.4% of total exports and 24.6% of imports).

The deficit unbalance toward the trade with non-euro countries also continued after the third month of the year. Although they account for less than a quarter of Romania’s trade, they contributed 32% to the overall trade deficit in the first quarter of 2018, but the trend from one month to the next is the increase in the share of intra-EU trade deficit.

*

  • Structure of foreign trade in March 2018 (million euro)
  • Export Import  Surplus/Deficit            Share in deficit
  • Intra-EU28 trade
  • Extra-EU28 trade

*

In the structure, Romania continued to obtain a positive sectoral balance in the foreign trade only on the machinery and transport equipment segment (+ EUR 917 billion).

This achievement compensated for the poor results on the segments of other manufactured products and, pay attention, on the food products sector, where the deficit went unacceptably high for our natural conditions, above the level of the manufactured products, other than machinery, and went close to the level in the category of fuels and lubricants.

Regarding the sectoral import coverage ratio by exports, the situation has worsened more and more clearly on the food products side (where it reached a worrying 61% at the end of the first quarter), and on the chemical products category where it dropped to only 30%. A minus of EUR 1.8 billion or about two-thirds of the trade deficit recorded in the first quarter of 2018 came from the trade of chemicals and derivatives.

*

  • Foreign trade structure by main product categories in March 2018
  • Category         export Import  Coverage ratio            Balance           Balance/Total deficit
  • Machinery and transport equipment
  • Other manufactured products
  • Food products, livestock
  • Fuels and lubricants
  • Chemicals and derivatives
  • Raw materials

*

The decline in the foreign trade of raw materials was relatively moderate, just surpassing EUR 100 million.

Moreover, it is neither desirable to export no added value or very low added value products but to process raw materials to create jobs and added value here.

Altogether, the simplified image of foreign trade results shows negative results somehow of the same value on manufactured products, food products and fuels, which, together, almost equal the “gap” in the chemical products category, while the plus in the automotive sector is about half the minus in the chemical sector that strongly worsens the overall result.

Mergeți în homepage ›

Publicat la data de 14.5.2018

Lăsați un comentariu


NEWS

"We are pulling ourselves out of maps!": Business community’s solutions for infrastructure development

In the medium and long term, companies in Romania lose business because of disarticulated infrastructure; the country overall loses new investment, the state budget loses… Mai mult

New Romania’s Agent at the EU Court of Justice: 32 years old, failed exams, a person supported by Olguta Vasilescu

The government agent at the EU Court of Justice, Razvan Horatiu Radu, was replaced by the Government by a decision of Prime Minister Viorica Dancila… Mai mult

European Commission urges Government to "fully and immediately" reimburse car taxes

The European Commission asks Romania to urgently align the system of taxes collected on the car registration to the European one. The request is announced… Mai mult

CCR President in a visit to Russia, despite that Ministry of Foreign Affairs has recommended not to make this visit

CCR President Valer Dorneanu is in Russia today, where he attends the Sankt Petersburg International Legal Forum, despite that MAE has recommended not to make… Mai mult

List of black payments / Corruption in health sectors: Bribes - 25% of contract value, higher than in other fields

Romania is the European country with the lowest spending in the health sector. However, DNA statistics show that the bribe in this field is higher… Mai mult

Finance Ministry analyses tax codes, article by article, to amend them again

The Tax Code and Fiscal Procedure Code will be amended by the end of this year with a "fair and logical" approach without "populist" initiatives,… Mai mult

Klaus Iohannis - fined by Anti-Discrimination Council with 2,000 RON for using word "offenders"

President Klaus Iohannis was fined with 2,000 RON by the National Council for Combating Discrimination. CNCD President Csaba Astalosz says though he disagrees with the… Mai mult

Multinationals in Romania: home countries and preferred domains

Romanian businesses control only 6.8% of the 78,181 groups of companies in Romania. There have been 78,181 groups of enterprises identified, out of which 5,311… Mai mult

London Stock Exchange opens a Service Centre in Bucharest with 200 employees

The London Stock Exchange Group (LSEG), the operator of London Stock Exchange, announced that it will open a business services centre in Bucharest through the… Mai mult

NATO largest exercise in Black Sea in 2018: More than 2,300 troops from seven countries participate in Sea Shield 18

21 military ships, 10 combat aircraft, and a submarine participate between May 4-11 in Sea Shield 18, the largest NATO exercise organised on the southern… Mai mult

"Emergency constitutional support": President Iohannis sends laws on judiciary to Venice Commission and asks Constitutional Court to wait for the answer

President Klaus Iohannis announced on Wednesday that he is referring to the Constitutional Court of Romania the Parliament's amendments to the three laws on the… Mai mult

IMF revised upwards Romanian economic growth in 2018, from 4.4% to 5.1%

The International Monetary Fund (IMF) has revised upwards the Romanian economy growth forecast for this year, from 4.4% to 5.1%, according to the latest World… Mai mult

Company insolvency, set on an upward trend in 2018, caused losses of RON 9.6 billion in 2017: ONRC statistics

The number of companies and authorized natural persons (PFA) which have declared insolvency increased by 19.31% in the first quarter of 2018 compared to the… Mai mult

Prime Minister Netanyahu's personal doctor, appointed as honorary adviser of Viorica Dancila

Herman Berkovits received in May 2014 the Key to the City from Mayor Sorin Oprescu Herman Berkovits, the personal doctor of Israeli Prime Minister Benjamin… Mai mult

Deloitte study: Romania vs. EU - Tax rules applied to losses from selling bad loans

Deloitte Romania, at the request of the Romanian Banking Association, conducted a study for analysing the tax treatment of the sale of receivables and the… Mai mult