Foreign direct investment (FDI) continued to weaken across most of Central, Eastern, and Southeast Europe in 2025, but Romania stood out with one of the strongest performances in the region, according to a report published by the Vienna Institute for International Economic Studies (wiiw).

Although total FDI inflows into the region rose to more than EUR 91 billion in 2025 from around EUR 75 billion in 2024, the increase was driven mainly by Russia and Romania, the report said.

According to gross data from the National Bank of Romania (BNR), foreign direct investment in Romania increased by 45% y/y to EUR 8.15 billion last year, while net inflows rose by 59% y/y to EUR 7.1 billion. However, new equity investment amounted to only EUR 1.3 billion, albeit 75% higher than in the previous year. Reinvested earnings accounted for around EUR 3.4 billion, while intra-group borrowing added another EUR 2.4 billion.

Across the EU member states in Eastern Europe, FDI declined by an average of 2% compared with 2024. The downturn was more pronounced across the broader Eastern European region, including the Western Balkans.

The picture within the eastern EU countries was mixed. Foreign direct investment virtually stalled in Slovakia, where inflows fell by 79%, in Estonia, which posted a 95% decline, and in Latvia, where they dropped by 83%. By contrast, Romania, Bulgaria, Slovenia, and Poland all recorded double-digit increases.

“The sharp rise of 45% in foreign direct investment in Romania highlights the country’s appeal to investors, despite the current economic and political crisis there,” said Olga Pindyuk, economist at wiiw and author of the report.

Romania’s FDI inflows in 2025 were almost on a par with those of Czechia, traditionally one of the main destinations for foreign investment in Eastern Europe.

The report comes despite a recent slowdown in Romania’s external financing. According to BNR data, net FDI inflows in the first four months of 2026 declined to EUR 1.53 billion from EUR 2.23 billion in the same period of 2025.

The strong FDI performance last year contrasted with a more subdued regional trend, prompting wiiw to describe Romania as experiencing an “investment boom” amid a broader slowdown in Eastern Europe.

iulian@romania-insider.com

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