Net investments in Romania's national economy totaled RON 193 billion (EUR 38.8 billion) in 2024, marking a 4.9% decline compared to the previous year (in volume terms), according to data published by the National Institute of Statistics (INS).

The decrease was primarily driven by a 10.8% drop in equipment purchases, including transport means, and a 5.9% reduction in spending (real terms) on new construction works, which accounted for 60.8% of total investments.

Despite the overall decline, investment in the "other expenses" category, which includes geological and drilling works, acquisition of livestock, vineyard and forestry plantations, and research and design studies, rose by 20% year-on-year.

By sector, construction absorbed the largest share of total investments at 38.2%, followed by industry and trade and services, each accounting for 20.5%. Investments in public administration, defense, education, healthcare, and social assistance increased to 17.9% of total investment, up from 15.4% in 2023. Agriculture remained the least funded sector, receiving 2.9% of total investments, a slight increase from 2.7% in the previous year.

In the fourth quarter of 2024, investment activity saw a sharper decline, with total investments falling by 16.7% year-on-year to RON 63 billion (EUR 12.7 billion).

iulian@romania-insider.com

(Photo source: Ruletkka/Dreamstime.com)