Romania's trade deficit surged 27% in Q1 2025, risking EU funds and a credit rating downgrade.

Romania's trade deficit jumped 27% to €8.45 billion in the first quarter of 2025, driven by faster-growing imports compared to exports. This economic strain comes amid political instability, raising concerns over potential suspension of EU funds and a possible downgrade of the country's credit rating to "junk" status. The Finance Minister warned of a potential "hard landing" if political issues persist, while business groups urge dialogue and stability to avoid a recession.