Non-residents' direct investment in Romania (net FDI) totaled EUR 4.56 billion in January-October 2018, nearly 10% more compared to the same period of 2017, Romania's National Bank (BNR) announced.

The FDI-to-GDP ratio thus reached 2.3% and the foreign direct investments have covered a significant part of the current account deficit reported at 4% of GDP for the same period.

Equity investments, including estimated net reinvestment of earnings, amounted to EUR 3.59 billion - virtually unchanged from the same period last year, while intercompany lending (loans contracted by local subsidiaries from parent groups abroad) surged by 74% compared to last year and recorded a net value of EUR 972 million. In other words, the inflow of long-term FDI (invested in equity) was more or less the same as last year but local companies (subsidiaries of multinational groups) have borrowed more from their parent groups.

Separately, the FDI stock held by non-residents in Romania increased to EUR 73.3 billion (37% of GDP) at the end of September after having advanced by EUR 6.6 billion (or by 10%) over the previous 12 months.

Net investments in Romania drop by 1.5% y/y in third quarter

editor@romania-insider.com

(photo source: Adobe Stock)