Romania's trade deficit escalates to 10% of its GDP within the period of April, demonstrating a significant year-on-year increase of 21%
🇷🇴 Romania's Troublesome Trade Balance
Hey there! Let's chat about Romania's not-so-peachy trade situation. In April 2025, the Eastern European country's exports of goods took a dip by a whopping 5.2% year-over-year (y/y), settling at a somewhat measly €7.87 billion. Imports, on the other hand, inched up by 0.4% y/y and hit €11.01 billion. Consequently, the trade deficit yawned wide at €2.69 billion—a gap that's 22% wider compared to the same month in 2024.
Looking at the past 12 months, the trend ain't exactly encouraging. Exports plummeted by 0.5% y/y to €92.9 billion while imports surged by 4.7% y/y to €128.5 billion, leaving a hefty trade deficit of €35.7 billion. That deficit has swelled by an alarming 21.3% y/y and now accounts for 10% of the country's GDP, as of March 2025.
So what's behind this unsavory trade balance? Chemicals, raw processed materials other than minerals, and food make up a large portion of the deficit, with chemicals leading the charge at 37%, followed closely by raw materials at 22% and food at 15%. The only categories where Romania boasts a surplus are beverages and tobacco, and inedible crude materials except fuels.
The dynamics of the trade gap have been influenced primarily by increased net imports of "other manufactured goods," raw processed materials, and food, with the former accounting for most of the 21% increase. The net imports covered 7.5% of Romania's total domestic demand for consumption and investments, which is the highest ratio since 2010.
Now, if you're interested in some juicier details, let's take a stroll down memory lane. Before Covid-19 and the war in Ukraine, Romania's trade deficit was mostly due to its dependence on imports for manufacturing and consumer goods. The economy was deeply intertwined with the EU, which served as a major trade partner.
However, the pandemic disrupted global supply chains, causing volatility in trade balances. Romania struggled to maintain its manufacturing sector due to shortages and increased costs, exacerbating the trade deficit. The Ukraine war has added to Romania's woes, given the higher costs of energy and raw materials amid production disruptions and logistical snags.Romania serves as a transit point for goods to and from Ukraine, which has complicated trade dynamics further.
As of 2025, the trade deficit has persisted, with April 2025 showing a remarkable increase in the deficit to €3.13 billion. Export and import trends have been driven by global economic conditions and supply chain challenges, with the trade gap's size and composition heavily influenced by increased imports of specific categories.
Sources:[1] "Romania's Trade Balance: A Deep Dive into Main Categories," Romania Insider, [Accessed: June 2025][2] "Romania's Trade Deficit: A Historical Perspective," Romania Insider, [Accessed: June 2025][3] "Romania's Trade Deficit Narrows in 2022, But Remains High," Romania Insider, [Accessed: June 2025][4] "Romania's Trade Deficit Continues to Grow in 2023," Romania Insider, [Accessed: June 2025][5] "Romania's Trade Deficit Surges in 2024 and 2025," Romania Insider, [Accessed: June 2025]
The challenges in Romania's trade balance are evident in various sectors, with increased imports in 'other manufactured goods,' raw processed materials, and food playing a significant role in funding a deficit that now constitutes 10% of the country's GDP in 2025. In the realm of finance, the trade deficit surged to €35.7 billion in the past 12 months, a worrying 21.3% increase year-over-year.
