BUCHAREST (Reuters) – Romania’s January-October foreign trade deficit jumped 53 percent to –8.7 billion ($11.6 billion) on strong imports and slowing export growth, the National Statistics Board (INS) said yesterday.

The deficit grew by the same amount in January-September, the INS said.

Exports were –21.3 billion in January-October, up 16.0 percent from the first 10 months of 2005. Growth in machinery exports eased to 35.2 percent year-on-year over January-October, from 35.8 percent rise in January-September, while textile exports fell by 1 percent.

Imports reached –30.1 billion in January-October, growing by 24.7 percent.

Romania is facing a steep rise in imports as it struggles to modernize its economy ahead of European Union entry in 2007.

The trade imbalance has triggered a ballooning current account deficit which widened by 46.6 percent to –6.7 billion in the January-September period.

Strong domestic consumption ahead of EU entry is driving up imports and fanning worries over long-term economic stability.

But analysts say robust foreign direct investment inflows, expected to rise to a record –8 billion this year, will offset the risks from the external shortfall.

The EU remained Romania’s main trading partner, taking 67.8 percent of exports and supplying 62.5 percent of imports.