Foreign direct investments in Romania rose to €10.7 billion in 2022, from €8 billion in the previous year, central bank data showed Monday.
The additional funds from foreign investors could not balance the payments and investment position, as Romania’s current account deficit ballooned by 52% last year.
The current account deficit was almost €26.6 billion in 2022, compared with €17.5 billion in the year before. The increase was mostly due to the wider trade deficit, as imports rose more quickly than exports in 2022.
Also, the external debt increased last year by more than €6 billion, almost entirely due to a 15% rise in short-term debts.
The economic context may further complicate the macroeconomic outlook for Romania, though investments are expected to be the main growth driver in 2022 following the implementation of the national recovery plan and the influx of other EU funds, according to the European Commission.
Still, economic growth is now expected to be 2.5% in 2023, compared to the 4.5% that was expected last year, the Winter 2023 Economic Forecast released Monday shows.
(Bogdan Neagu | EURACTIV.ro)
Source: euractiv.com
