FDI to GDP ratio in Romania eases slightly to 2.3% of GDP in 2019

The Foreign Direct Investment (FDI) flows to Romania edged down slightly to EUR 5.17 billion in 2019, from EUR 5.26 bln in 2018, according to the annual FDI report published by Romania's National Bank (BNR).

From a broader perspective, FDI remained robust compared to the EUR 4.5-4.7 bln in 2016-2017.

The FDI to GDP ratio decreased from 2.6% in 2018 to 2.3% in 2019.

More than half of the FDI inflows in Romania last year consisted of reinvested earnings (EUR 2.8 bln) while the new equity contribution of the foreign investors was only EUR 2.2 bln.

The trade sector continued to attract the highest FDI flows in 2019 (EUR 1.8 bln), amid strong consumption growth. Over EUR 1.3 bln went into industry, of which EUR 980 mln in the manufacturing industries.

The main activities targeted were the food, beverage, and tobacco industry (EUR 309 mln), automobile industry (EUR 214 mln), and machinery and equipment construction (EUR 93 mln).

Financial intermediation and insurance attracted foreign direct investment worth more than EUR 1.1 bln last year.

Another area that attracted the investors' attention was IT&C, with inflows of EUR 447 mln in 2019.

The total FDI stock in Romania reached EUR 88.3 bln at the end of 2019, up by 8.9% year-on-year. Still, its share in the GDP decreased to 39.5%, the lowest since 2008.

(Photo: Wanida Prapan/ Dreamstime)