The net inflow of foreign direct investments (FDI) to Romania increased last year by 9.8% year-on-year to EUR 5.27 billion, a report compiled by Romania’s National Bank (BNR) in collaboration with the National Statistics Institute (INS) shows.
The equity investments were nearly EUR 3.0 bln, the re-invested earnings were EUR 2.58 bln and the balance of intra-group loans indicated net outflows of EUR 280 mln.
The re-invested earnings were calculated based on the total net profits made by foreign-owned companies in Romania, which totaled EUR 8.93 bln, by deducting the dividends they paid to shareholders (EUR 3.55 bln) and the total loses reported by foreign-owned companies (EUR 2.81 bln).
The highest FDI net inflows were recorded in the trade sector (EUR 1.58 bln), manufacturing (EUR 1.36 bln), the financial sector (EUR 896 mln), and construction and real estate (EUR 581 mln).
The stock of FDI at the end of 2018 reached EUR 81.1 bln, of which EUR 57.5 bln equity, including reinvested profit (70.9% of total stock of FDI), and EUR 23.6 bln was net intra-group credit received by FDI companies (29.15%).
By source of capital, the highest foreign direct investment at the end of 2018 came from the Netherlands (23.9% of the total), Germany (12.7%), Austria (12.2%), and Italy (9.5%). FDI companies in Romania accounted for 75% of the country’s exports of goods and 68% of the imports.
Romania hosted 109 foreign direct investment (FDI) projects last year, a 13% drop from 2017, and ranked 13th in the EY...