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Romania’s current account gap narrows 75.5% y/y in the first two monts

  The balance of payments deficit reduced 75.5% year on year in the first two months of 2009, to €614 million, following a significant shrink in the trade gap and a hike in the surplus of the current transfers balance, data of the country’s central lender BNR show.

The current account deficit amounted to €2.504 billion in the first two months of 2008. The trade gap, the main source fueling the external unbalance, compressed by 59.5% to €961 million in the first two months of the year, from €2.37 billion in the similar period of 2008.

The service balance recorded a surplus of €67 million in January and February 2009, half as in the equivalent period of 2008, when it stood at RON 135 million.

The segment of tourism and travel services plunged below zero, with a deficit of €50 million, compared to the surplus of €34 million from the first two months last year.

However, the external balance of transportation services shifted to a plus, reporting a surplus of €85 million in January-February this year, from the 37 million deficit in 2008.

Cash inflows from current transfers, including remittances from Romanians abroad, hiked 31.7% in the first two months of the year to €1.48 billion.

Last year, Romania’s balance of payments braked its advance to 1.2%, reaching €16.877 billion, after widening more than 60% in 2007. The external deficit shrank in 2008 to 12.3% of the gross domestic product (GDP), from 13.5% in the previous year. (News In)