Foreign companies are responsible for 70% of Romania’s exports and 60% of the imports, according to a study made by the Bucharest University of Economic Studies (ASE) and the Foreign Investors Council (FIC).

Foreign companies also employ about a third of the work force in the private sector in Romania, namely some 1.2 million people, the same study reveals. Moreover, the foreign companies generate 60% of the gross added value in industries such as automotive and IT&C.

The Foreign Investors Council (FIC) has decided to present these numbers as a response to the anti-multinational rhetoric of some Romanian officials.

“The main conclusion of the study is that FDIs played a decisive role in the past 20 years and have helped the Romanian economy in its transition to functioning free markets,” reads a FIC press release. “Considering the large investment needs of Romania, it is likely that foreign investors will continue to play a significant role in the future. Foreign companies have contributed significantly to modernizing the Romanian economy and integrating it in international production chains as a results of capital infusions and transfers of know-how and technology,” FIC representatives say.

The foreign direct investment (FDI) stock in Romania reached EUR 62.29 billion at the end of 2015, up 12 times compared to the end of 1999. Half of the FDI stock was in industry. However, the FDI stock in Romania is still three times lower than in Poland (EUR 192 billion), and even Czech Republic (EUR 101.9 bln), and Hungary (EUR 83 bln).

The FDI stock per capita in Romania was only EUR 3,130 at the end of 2015, compared to EUR 5,053 in Poland, EUR 5,270 in Bulgaria, EUR 8,386 in Hungary, and EUR 9,700 in Czech Republic.

The full report is available here (in Romanian).

Romania’s economy, most dependent on multinationals in EU

editor@romania-insider.com