Romania Insider
Foreign direct investment in RO, up 2.5% in Jan-Nov 2019

Foreign direct investment (FDI) in Romania increased in the first 11 months of 2019 by about 2.55% compared to the same period last year, to EUR 5.15 billion, according to data published by Romania’s National Bank (BNR).

In the banking sector, foreign players (which dominate the market) poured EUR 787 mln (+2.5% year-on-year) almost entirely in equity, consisting mainly of reinvested earnings.

Given the sluggish lending and more than robust capital adequacy, most of the investments must have been reinvested earnings.

In the corporate sector, the foreign direct investments increased by 2.5% year-on-year to EUR 4.36 bln in January-November. Notably, the volume of new equity including reinvested earnings shrank by 8.5% year-on-year to EUR 3.71 bln, while the intra-group lending (more volatile FDI) tripled to EUR 648 mln in January-November.

A more detailed investigation on the equity investments (reinvested earnings included) in the corporate sector show certain slowdown along, however, a moderate growing trend: the 12-month rolling figure dropped to EUR 4.35 bln as of the end of November from EUR 5.21 bln two months earlier - but the volatility of this time series is quite significant and the backward adjustments rather wide. From EUR 3.6 bln, the volume of equity investments in Romanian non-financial corporations hit EUR 4.7 bln in 2018 and the 12-month rolling average was 3.3% up year-on-year as of November 2019.

(Photo: Shutterstock)

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For a decade, Romania Insider has been your platform of choice for reliable information on all things Romania. We have always been proud of our ability to bring you bias-free reporting but this hasn't always been easy. We have been thinking about making some changes and can't imagine doing this without your feedback.
For this, we would appreciate it very much if we could borrow 2 minutes of your day to fill out this survey. 
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Romania Insider
Foreign direct investment in RO, up 2.5% in Jan-Nov 2019

Foreign direct investment (FDI) in Romania increased in the first 11 months of 2019 by about 2.55% compared to the same period last year, to EUR 5.15 billion, according to data published by Romania’s National Bank (BNR).

In the banking sector, foreign players (which dominate the market) poured EUR 787 mln (+2.5% year-on-year) almost entirely in equity, consisting mainly of reinvested earnings.

Given the sluggish lending and more than robust capital adequacy, most of the investments must have been reinvested earnings.

In the corporate sector, the foreign direct investments increased by 2.5% year-on-year to EUR 4.36 bln in January-November. Notably, the volume of new equity including reinvested earnings shrank by 8.5% year-on-year to EUR 3.71 bln, while the intra-group lending (more volatile FDI) tripled to EUR 648 mln in January-November.

A more detailed investigation on the equity investments (reinvested earnings included) in the corporate sector show certain slowdown along, however, a moderate growing trend: the 12-month rolling figure dropped to EUR 4.35 bln as of the end of November from EUR 5.21 bln two months earlier - but the volatility of this time series is quite significant and the backward adjustments rather wide. From EUR 3.6 bln, the volume of equity investments in Romanian non-financial corporations hit EUR 4.7 bln in 2018 and the 12-month rolling average was 3.3% up year-on-year as of November 2019.

(Photo: Shutterstock)

[email protected]

Normal

For a decade, Romania Insider has been your platform of choice for reliable information on all things Romania. We have always been proud of our ability to bring you bias-free reporting but this hasn't always been easy. We have been thinking about making some changes and can't imagine doing this without your feedback.
For this, we would appreciate it very much if we could borrow 2 minutes of your day to fill out this survey. 
Thank you for reading Romania Insider!  

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