Exports saw a mere 2% increase in the first two months of this year, after witnessing growth of just 0.8% in February, according to data published by the National Statistics Institute (INS) yesterday.
In euros, the trade deficit for this period increased by 83% almost twice as much as last year.
Sales of Romanian goods abroad increased 12.5% in euros in the first two months of the year, with both January and February experiencing the same growth pace. Last year, exports increased 16.2% in euros.
However, half of the growth in exports in the first two months of the year was prompted by the appreciation of the RON, with the national currency increasing by just 5.9% against the figures recorded for the same period in 2006. Moreover, not accounting for 3.9% level of inflation, exports managed to increase by a slim margin of 2% in real terms against last year levels.
Imports also saw an increase of 31% in euros, of 24% in RON, and of 19% in real terms. Consequently, the trade deficit (exports - imports) increased to 83% in euros against the rate of 45% seen for the whole of last year.
The trend was also noticeable in February, when the trade deficit was 77% higher than in February 2006, with exports increasing by just 0.8% in real terms.
Florin Citu, chief economist at ING Bank, spoke about a "sudden decline" in exports, which he believes can be accounted for by the appreciation of the RON against the major currencies.
"In fact, if we look at the last 12 months, the growth rate of exports fell from 14.7% in January to 13.4% in February, as compared with a 16.2% average in 2006. We are clearly starting to see the effects of an appreciation of the RON against the euro and the dollar," says Citu.
The appreciation of the RON, a trend that maintained at the beginning of this year, also contributed to lowering the level of inflation, by making imported products cheaper, which account for more than half of the demand of domestic consumption.
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