Balance of Payments Bulletin 2006

The external sector of economy presented with a negative balance on current account over 2006, mainly caused by a high trade deficit. Capital inflows were sufficient to offset the current deficit, allowing as such an overall positive balance amounting to EUR 207 million. The relative current account indicator to the GDP accounted for about 7.3 per cent, maintaining the same level as in the previous year. Trade deficit has been representing a permanent feature of foreign trade developments, affecting the high levels of current account deficit. The high demand for imports, partly to meet the economic growth need and partly to meet the consumer needs, has provided evidence for the expansion of the imports' base over the years. This dynamics observed in imports was not followed by the growth of exports, causing the trade gap to deepen and constitute the main driver for the high current deficit.