The net flow of foreign direct investments (FDI) to Romania contracted by 11% y/y to EUR 5.7 billion in 2024, according to data published by the National Bank of Romania (BNR).

Of this, EUR 4.0 billion (-20% y/y) was reinvested earnings. The FDI companies thus reinvested just over one-third of the EUR 11.6 billion revenues they derived from local operations.

The rest of the revenues generated by the FDI companies, specifically nearly EUR 7.6 billion, was repatriated. For context, the stock of FDI in Romania increased by 6% y/y (+EUR 6.6 billion) to almost EUR 125 billion at the end of 2024. 

The net FDI, other than the reinvested earnings (new equity and loans extended by parent groups to local subsidiaries), was EUR 1.66 billion in 2024, up from EUR 1.33 billion in 2023.

The net FDI-to-GDP ratio decreased to 1.6% in 2024, down from 2.1% in 2023 and 3.7% in 2021-2022. 

iulian@romania-insider.com

(Photo source: Ruletkka/Dreamstime.com)