The gross foreign direct investments (FDI) to Romania contracted by some 7% to EUR 6.5 bln in 12 months to August 2024, according to data published by the National Bank of Romania (BNR). 

Furthermore, FDI to Romania is essentially formed by reinvested earnings (and some intra-group financing) rather than new equity – only EUR 1.8 bln (-14% y/y)  in 12 months to August 2024.

The FDI in 12 months to August 2024 accounted for 1.9% of the GDP, based on the latest 12-month GDP data available dating from June, down from 2.3% calculated on comparable terms in August 2023.

The decrease in FDI concentrated in the area of equity inflows, including reinvested earnings, which narrowed by some 15% y/y to EUR 5.9 bln in net terms. At the same time, the debt flows from parent groups to FDI companies in Romania turned to EUR 372 mln inflows in the last 12 months, from EUR 60 mln outflows in the previous 12 months.

The volume of reinvested earnings accounted for the largest part of the FDI in Romania: EUR 4.1 bln in 12 months to August 2024, 15.3% less compared to the previous 12-month period.

iulian@romania-insider.com

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