Coface: Romania, the second importer of retail products within the EU | Progresiv

Romania ranks second among the largest retail products importers in the European Union after Hungary, according to Coface data. Thus, the first two months of this year started with a record import level of 65.2 billion lei, up by 12% over the same period last year. This generated a trade deficit in the analyzed period, of 11.3 billion lei, up by almost 50% compared to last year, and the highest level of the last decade. Almost 53% of these imports are concentrated in retail and commerce products, most of which are for household consumption. From this perspective, Romania is the second largest importer in the EU, with only Hungary accounting for a higher share of retail products in total imports, or 55%, while the EU average is 38%.

"Analyzing the figures over the last decade, we see a strongly positive correlation between the evolution of the average wage (cause) and the dynamics of imports (effect). Given the high cost of volatile capital that finances the current account deficit and the public debt (Romania is the most expensive in Europe for long-term loans contracted at the end of 2018), we expect a moderation in the growth rate of the average wage in the economy, both in the public sector and especially in the private sector. This may lead to a slowdown in imports in the second half of the current year, but the high share of retail products will persist due to consumption-driven growth", said Iancu Guda, Services Director, Coface Romania.

Coface is one of the most important players in credit insurance, risk management and global economy. The Group's services and solutions protect and help companies make credit decisions to improve their ability to sell on both domestic and export markets. In 2017, Coface had approximately 4,100 employees in 100 countries and a turnover of 1.4 billion euros.