The chemical industry in Romania is significantly contributing to the country’s trade deficit, representing 42.2% of the total deficit. This imbalance is particularly concerning as Romania stands alone among CEE states with a trade deficit, projected to exceed EUR 20 billion for the year. The deficit in chemical trade reached EUR 12.2 billion last year, increasing from EUR 13.7 billion the year before, now comprising 42.2% of the total trade deficit.

The decline in imports of chemicals is attributed to reduced demand from a struggling manufacturing sector. The closure of key chemical plants like Arpechim and Oltchim, along with the bankruptcy of co[mepr-show rules=”1611″ unauth=”both”]mpanies such as Interagro, has exacerbated the trade deficit in the chemical industry. Despite having ample natural resources, Romania imported nearly EUR 19 billion worth of chemical products in 2022, highlighting the need to revitalize domestic production.

Imports of chemical products, including pharmaceuticals, have been on the rise, contributing to the overall trade deficit. The cost of energy, a crucial factor for the energy-intensive chemical industry, has also impacted import values. However, there has been a recent uptick in the production of substances and chemicals, driven by lower energy costs and raw material prices, leading to a more competitive market.

While the chemical industry faced challenges in recent years, there are positive signs of growth, with expectations of a 7.0% increase in industrial production in the second quarter of 2024. The sector’s resilience and adaptability are crucial for Romania’s economic recovery and reducing its trade deficit.

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