The gross inflows of foreign direct investments (FDI) to Romania dropped by 16% y/y to EUR 7.7 billion in the 12 months to August 2023, according to data released by the National Bank of Romania (BNR).

Measured as a ratio to GDP, the FDI dropped to 2.5%, down from 4.6% in the 12-month period to August 2022 and close to the 2.6% ratio in the previous 12-month period. 

On the upside, the equity FDI rose to the highest level since before the Covid-19 crisis namely, it reached EUR 2.55 billion in the 12 months to August 2023, quadrupling from the previous 12-month period.

Out of total FDI, more than half (EUR 4.91 billion) came in the form of reinvested profits – earnings reported by the FDI companies and not (yet) repatriated. It is a sizeable decline from the EUR 6.4 billion outstanding reinvested earnings set aside in the 12 months to August 2022 by the FDI companies from their windfall profits derived in 2021.

But this was still more than double the EUR 2 billion reinvested earnings in 12 months to August 2019. 

iulian@romania-insider.com

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