Foreign companies made direct investment in Romania worth EUR 1.075 billion in the first three months of this year, down 22% compared to January-March 2016, according to data released by Romania’s National Bank (BNR).

The equity investments, including the reinvested profits, totaled EUR 1.258 billion at the end of March this year while the intra-group loans generated net outflows worth EUR -183 million.

Foreign direct investment is considered the most beneficial investment made by foreign companies in the economy, because it is carried out on the long term and usually has positive effects on the economy and wages.

In 2016, the foreign direct investment in Romania reached EUR 4.08 billion, a record level for the last eight years. The foreign direct investment fully covered Romania's current account deficit, estimated at EUR 4.1 billion last year, according to preliminary data from the central bank.

Romanians working abroad sent EUR 17.3 billion in the country between 2009 and 2014, more than the total foreign direct investment in Romania during that period, which totaled EUR 15 billion. The foreign direct investment surpassed the amounts sent to the country by the Romanian diaspora only in 2015.

editor@romania-insider.com