FDI in Romania Sees 8.6% Year-on-Year Decline in Jan-Feb

Foreign direct investment (FDI) in Romania experienced a decline of 8.6%, falling to 1.229 billion euros ($1.309 billion) in the initial two months of 2024 from 1.345 billion euros recorded in the corresponding period of the previous year, according to the latest data released by the central bank.

In terms of net equity investment, which includes estimated net reinvestment of earnings, the total for the first two months of the year amounted to 1.105 billion euros. However, net intercompany lending saw a negative balance of 124 million euros during the same period, as per provisional data provided by the central bank in its balance of payments report.

Specifically for the month of February, FDI in Romania amounted to 646 million euros, down from 749 million euros reported in the same month of the previous year.

The declining trend in FDI is also reflected in the establishment of new businesses with foreign capital, which saw an 8.3% decrease year-on-year, totaling 1,084 in the first two months of 2024, according to data published by the National Trade Register Office.

Despite these recent figures, Romania ranked 17th among the most attractive emerging markets for foreign direct investment (FDI) through January 2024, according to a survey conducted by global management consultancy Kearney.

In the preceding year, FDI in Romania amounted to 6.587 billion euros, marking a 34% decline compared to the figures reported in 2022.

Overall, while the recent data indicates a short-term decline in FDI inflows, Romania remains an important player in the global investment landscape, with ongoing efforts needed to address challenges and foster a more conducive environment for foreign investors.