Net investments in Romania drop by 1.5% y/y in third quarter

The volume of investments (investments expressed in comparable prices) decreased by 1.5% in the third quarter of 2018, compared to the same period of 2017 (y/y). In absolute terms, the net investments amounted to RON 21.0 billion (EUR 4.5 billion), out of which 46.0% were spent on new production equipment, 44.8% on new constructions and 9.2% for other purposes. On the upside, investments in equipment (including transport means) that in principle contribute to the economy's production capacity, surged by 15.4% y/y. This is in line with the expectations, as the manufacturing companies are boosting their technology in order to cope with the workforce shortage. In contrast, investments in new constructions contracted by 14.3% y/y. The construction works data confirm this: the construction works index contracted by 9.8% y/y in Q3, driven by the 27.5% y/y drop on the residential construction segment and 12% y/y decline in the volume of works for non-residential buildings. editor@romania-insider.com (photo source: Pexels.com)