Foreign direct investments drop by 12% in first five months in Romania

Foreign companies made direct investments in Romania worth EUR 1.44 billion in the first five months of this year, down 12.6% over January-May 2016, according to Romania’s National Bank (BNR).

By comparison, foreign direct investment reached EUR 1.65 billion in the first five months of 2016.

The equity investments, including the reinvested profits, totaled EUR 1.85 billion at the end of May, while the intra-group loans generated net outflows worth EUR -406 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.

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