Foreign direct investments in Romania shrink by 60% in Jan-Nov

The net direct investments of non-residents in Romania fell by some 60% in the first 11 months of 2020 compared to the same period of 2019, to EUR 1.84 billion, according to Romania's National Bank (BNR).

The decline was driven mainly by strong net FDI outflows in February (EUR 1.4 bln, before the state of emergency).

The FDI flows turned positive in May -September (with robust figures in April-May).

While the outflows in February stood for intra-group loans returned by local FDI firms, the inflows in the coming months were driven by profits reinvested by FDI companies.

Overall, the direct investments of non-residents in Romania amounted to EUR 1.84 bln in Jan-Nov, compared to EUR 4.44 bln in January-November 2019.

Out of this, the equity investments, including estimated net reinvested profits, amounted to a net value of EUR 3.81 bln, and the intra-group loans recorded a negative net value of EUR 1.97 bln.

In November alone, the net FD to Romania returned to a positive value of EUR 208 mln after the EUR 5 mln net FDI outflows in October.

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