Romania faces record current account deficit and high inflation

Romania is facing significant economic challenges, highlighted by a record current account deficit of 14.2 billion euros recorded in the first six months of 2026. This figure represents the highest value ever for this period, signaling that more money is flowing out of the country than coming in.

Economist Radu Georgescu notes that while a slowdown in domestic consumption was expected to reduce imports and the deficit, the opposite has occurred. Companies continue to import goods from countries with lower inflation rather than producing locally due to rising domestic costs. Additionally, a decrease in foreign direct investment and higher dividend transfers by foreign-capital companies have further deteriorated the account.

Simultaneously, Romania maintains the highest inflation rate in the European Union. The National Bank of Romania (BNR) has maintained high interest rates to prevent supply-side inflation—driven by energy and taxes—from evolving into persistent demand-side inflation. The central bank aims to manage public and corporate expectations to prevent a cycle of wage-price increases that could lead to permanent economic price hikes.