Romania's trade deficit has contracted by 10% year-over-year to EUR 2.6 billion in August, marking the fourth consecutive month of negative annual dynamics.
The deficit in 12 months to August eased to EUR 34.4 billion, down from EUR 35.7 billion calculated in 12 months to April. This led to a decrease in the trade deficit to GDP ratio from 9.9% in April to 9.6% in June, and is likely closer to 9% as of August.
The weaker consumer demand, already visible in August with a 4% year-over-year drop in retail sales, is likely to contribute to weaker imports in the coming quarters. The exports' performance still depends on the economic recovery in Europe.
The trade gap is likely to continue shrinking due to weaker consumer demand and a smaller deficit.
Author's summary: Romania's trade deficit shrinks for fourth month.