Romania’s trade deficit (the balance between exports and imports) continued to grow this year, but the big problem is that the deficit in some sectors has become chronic:
they are the gaps in the Romanian economy which should be addressed by economic and industrial policies, all the more since raw materials are within industry’s reach.
After the first five months of 2024, exports fell by 2.9%, to EUR 38.5 bln, while imports rose by 0.2% to EUR 50.8 bln, according to the latest data from NIS. Trade balance deficit stood at EUR 12.3 bln in the first five months, EUR 1.23 bln (+11.1%) more than recorded in the similar period of 2023.
Here are the sectors where trade deficit has become chronic along with a 5-year comparison: between 2019, the year before the pandemic, and 2023:
Sectors keeping Romania dependent on imports despite economy’s access to raw materials and industries
As shown in the table below, the chemical industry produces our biggest trade deficit: Romania imported EUR 12.22 billion more than it exported in 2023.
Even the automotive industry went from a slight surplus in 2019, to a deficit of EUR 3.33 bln.
The fact that we exported very much fuel to Ukraine last year did not help our deficit in this sector, which reached EUR 5,12 bln.
The foods trade deficit is added to this, in terms of which we consumed EUR 3.25 billion more than we exported.
Goods categories that recorded surpluses
There are also sectors in which Romania exports more than it imports, but they are marginal, while the difference between exports and imports is insignificant in absolute value:
European trade – Romania’s trend regarding trade deficit. Poland has a EUR 34 bln surplus
In 2023, the value of exports within the EU, by country, varied from EUR 878 bln in the case of Germany to a little over EUR 1 billion, in the case of Cyprus.
Romania’s intracommunity exports stood at EUR 67.57 bln in 2023, representing 1.6% of the total intracommunity exports which reached EUR 4,131, 06 bln, according to Eurostat.
Seven countries – Germany, the Netherlands, Belgium, Italy, Poland and Spain – hold 73% of the total intracommunity exports in the European Union, with over EUR 200 bln, the remaining 21 countries holding the rest of 27% of the total.
Romania, with a share of 1.6% of the total ranked 13th among EU states.
On the other hand, Poland went from a deficit of EUR 5 bln in 2002, in relation to the EU states, to a surplus of EUR 32.34 bln, while the trend continues to rise.
Romania’s main import-export partners
Germany is Romania’s biggest trade partner with approximately one fifth of the total in terms of exports as well as imports. Italy ranks second, with approximately 10% of the total trade.
In terms of exports, France ranks third with 6% of the total, followed by Hungary and Bulgaria. In terms of imports, Hungary ranks third with 6% of the total, followed by Poland and China.
3rd place in terms of deficit in the EU
Romania ranks third in the EU in terms of trade deficit, with EUR 21.9 bln recorded in 2023, after France and Portugal. Eurostat states that it is difficult to interpret figures in absolute terms due to errors determined by the quasi-transit phenomenon. In other words, some goods imported by a country are re-exported to other EU countries and may be mistakenly passed as exports or imports, whatever the case may be.
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