Exports continue to increase, imports slow down

Exports continued to go up in August, driven by foreign demand, at an accelerated 25.2% compared with August 2009, while the imports rise slowed down to 13.7%.

"The figures reveal an improvement in the balance of payments, following an accelerated export growth rate, which has for the first time in the last few months outpaced the import increase rate," said Melania Hăncilă, Volksbank's chief economist. Although exports rose at a faster pace than imports, the trade deficit went up by 1.9% in the first eight months against the similar period of last year, to 6.09 billion euros.

Some analysts have warned that the rising trend of the trade deficit is alarming considering that consumption and investments have slimmed down and that the economy is declining, and say a more flexible exchange rate is needed, which would help competitive prices.

Aurica Sereny, president of the Furniture Manufacturers' Association in Romania, is in favour of a stable exchange rate, without major rises or declines. "The exchange rate is acceptable for exporters. We are in favour of exchange rate stability, without major fluctuations."

News source: ZF English link: article