Romania’S External Deficit. Internal Conditions

Starting with 1990, the year at the beginning of the transition to the market economy, and up to the present moment, regardless of the dynamics of economic growth, Romania has constantly recorded external deficits. There are a large number of internal and external factors that directly or indirectly influence the level and evolution of a country's external deficit, among the most important being the evolution of the gross domestic product, trade relations including exports and imports, the level of prices for raw materials, oil, gas and energy, internal and external inflation, the budget deficit, the level of public and private debt, foreign direct investments, remittances, etc. An increased external deficit in the long term can become a big problem because it is transferred to the external debt of the state and from a certain level and under certain conditions it can become unsustainable. The current work aims to analyze the specific internal conditions at the level of 2023 that influence the evolution of Romania's external deficit.