Romania's foreign investment plunges 25%, external debt climbs as BNR releases key figures

Romania's economic performance in early 2026 presents a mixed picture, with a slight improvement in the current account deficit offset by a significant drop in foreign investment and a continued rise in external debt.

The National Bank of Romania (BNR) reported that the current account deficit narrowed to 11.425 billion euros in the first five months of the year, down from 12.075 billion euros in the same period of 2025. This reduction, attributed mainly to a smaller trade deficit and a decrease in secondary income deficits, suggests a marginal improvement in the country's balance of payments.

However, this positive trend is overshadowed by a stark decline in foreign direct investment. FDI fell by about 25%, from 2.913 billion euros in early 2025 to 2.195 billion euros in the corresponding period of 2026. This sharp decrease signals caution from international investors, potentially influenced by concerns over Romania's fiscal and budgetary situation and its economic growth prospects.

Adding to the economic concerns, Romania's total external debt climbed to 230.9 billion euros by the end of May 2026, an increase of 2.451 billion euros over the first five months of the year. While the long-term external debt service ratio saw a reduction, the overall debt level remains a significant point of attention, especially as the country faces evaluations from rating agencies.

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In the period January-May 2026, the current account of the balance of payments recorded a deficit of 11,425 million euros, compared to 12,075 million euros in the period January-May 2025. In its structure, the balance of goods recorded a deficit 536 million euros lower, the balance of services recorded a similar surplus, the primary income balance recorded a deficit 146 million euros higher, and the secondary income balance recorded a deficit 264 million euros lower.