Foreign companies made direct investments in Romania worth EUR 2.36 billion in the first seven months of this year, down 17.2% over January-July 2016, according to Romania’s National Bank (BNR).

By comparison, foreign direct investment reached EUR 2.86 billion in the first seven months of 2016.

The equity investments, including the reinvested profits, totaled EUR 2.43 billion at the end of July, while the intra-group loans generated net outflows worth EUR -67 million.

Foreign direct investments are considered the most beneficial investments made by foreign companies in the economy, because they are carried out on the long term and usually have positive effects on the economy and wages. In 2016, the foreign direct investment in Romania reached EUR 4.08 billion, a record level for the last eight years.

The number of newly established firms with foreign capital rose by 9.3% in the first six months of this year to 2,938 units, according to the National Trade Registry (ONRC).

Romania recorded in 2016 the weakest year in the last 18 years in terms of newly established foreign capital companies. Little over 5,300 companies with foreign capital were set up last year.

editor@romania-insider.com