IMF report – Conclusions show that Romania has become a new and atypical growth model: through imbalances. Which will soon get to be paid

Romania’s macroeconomic imbalances have increased in the past year, and economic and fiscal policies have to change so that the population’s incomes and prospects of… Mai mult

Discharging imbalances on RON exchange rate could start even this year. Analysts’ scenarios and BNR’s uncertainty

Analysts’ scenarios on the evolution of the exchange rate are rather prudent for the coming months, but severe for the beginning of the next year… Mai mult

Stimulating over-indebtedness by stimulating consumption: Overdue loans trigger warning signal – Map of debtors

The policy of stimulating consumption has also distorted the degree of indebtedness in the territorial distribution, and rich counties are competing with the poor ones… Mai mult

Interview with Fogh Rasmussen: “NATO’s role is to keep Russians out, Americans in and Europeans involved”

The text below is a series of fragments from the interview that former NATO Secretary General Anders Fogh Rasmussen gave to CRONICILE Curs de guvernare… Mai mult

Gas and electricity prices: Romania in a European context

Romania ranked fourth in the second half of last year in the EU in terms of price increase in natural gas provided to the population,… Mai mult


Foreign investments picture: On economic sectors, regions, countries of capital origin

de Dordia Tereza 5.10.2016

structura_investitii-pozaFDI net inflow in 2015 was 3,461 million euro (slightly more than 2% of last year’s GDP), according to a research made by the central bank in collaboration with the National Institute of Statistics (INS). Final FDI stock, as of 31 December 2015, came in at EUR 64,433 million (40% of GDP), out of which about 70% equity of FDI enterprises and 30% total net credit from foreign direct investors.

The amount representing the FDI in 2015 resulted as difference between EUR 3,595 million, equity of FDI enterprises (foreign capital represents at least ten percent) – contribution which includes the reinvested earnings amounted to EUR 510 million – and the net credit of direct investment enterprises from foreign direct investors of EUR -134 million (negative value representing the difference between loan repayments and new credit inflows).

Strictly speaking, foreign funding inflow was EUR 3,085 million, of which investments in new enterprises (greenfield) accounted for only 96 million, representing less than three percent of the total, which indicates the relatively low interest of foreign investors to develop new businesses in Romania.

Notably, the amounts from mergers and acquisitions had a negative contribution of 5 million to the end result. The most significant amount represented the development of existing enterprises (EUR 1,742 million, about a half of the net inflow), while the rest of EUR 1,252 million represented the company restructuring.

Structure by country of origin: from countries to offshores

Three countries (the Netherlands, Austria and Germany) concentrate more than a half of the foreign investments, if we go by the officially declared residence of the foreign capital.

However, the real origin is significantly different, which is obvious in ranking countries like Cyprus and Luxembourg the fourth, respectively the seventh, while the US only ranks the tenth and Britain just the 13th.



  • Amounts and percentages for the main origin countries of the foreign investments (31 December 2015)
  • Country – million euro – % of total



Also important to note the rather weak positioning of the second and third Romania’s foreign trade partners, namely France and Italy, which ranks here the 5th, respectively the 6th; as well as the presence above the 1 percent threshold of our Eastern bloc colleagues Hungary and the Czech Republic, which also needed foreign investments but that did not prevent them from capitalizing on opportunities abroad.

Foreign investments, on main development regions

In the allocation of foreign investments by region, the Bucharest region concentrated about 60% of the amounts accounted for as FDI.

This region was followed at a great distance exactly by the most developed regions of Romania, while Oltenia and Moldova ended up at the bottom of the list of attractively for the foreign capital. This result deepened the development imbalances and the gaps between regions to a ratio of almost 4 to 1 (Bucharest-Ilfov with 131% of the EU average, as compared to the North-East with 34%).



  • FDI distribution by development regions
  • Region – million euro – % of total


FDI by main economic activities

Contrary to daily stereotypes publicly circulated and the visual impression, FDI was primarily channelled to the industry, with 44.6% of the total amount invested by foreigners in Romania, out of which the largest recipient was the manufacturing industry (over 20 billion or 31.8% of total). The second largest recipients were the banks and insurance companies and only the third, almost on par, the trade, next to construction.

It is noted in the manufacturing industry category a difference between similar FDI amounts for the petrochemical sector, which fuels almost entirely Romania’s trade deficit, and the transport industry, which on the contrary stimulated the growth of medium and high-tech products’ share and contributed an essential sectoral surplus to balancing the trade balance.



  • FDI distribution by main economic activities
  • Activity – million euro – % of total
  • Manufacturing industry
  • of which
  • oil processing, chemicals, rubber products, etc.
  • transport means
  • metallurgy
  • food, beverages and tobacco
  • wood products, including furniture
  • cement, glassware, ceramics
  • Financial intermediation and insurance
  • Construction and real estate transactions
  • Trade
  • Industry – energy, natural gas, water
  • Professional, scientific, technical activities, etc.
  • Information technology and communications
  • Extractive industry
  • Agriculture, forestry and fishing
  • Transportation
  • Hotels and restaurants
  • Other


Although it has almost gone unnoticed, the extremely low share of FDI in the hotels and restaurants segment affected the development of an economic sector far below the natural potential and the accommodation capacity available in Romania. The same applies to agriculture, which has a huge potential for productivity increase, key factor for improving competitiveness at national level.

Altogether, FDI level was rather low compared to the size of the economy, with an average of less than two percent of GDP per year. As compared to the payment of obligations on the public debt that almost reached to the threshold of 40% of GDP (another interesting coincidence, in the light of the results of a quarter century of capitalist economy).

Mergeți în homepage ›

Publicat la data de 5.10.2016

Lăsați un comentariu


ANAF changes selection procedure for liquidators. Main changes

The new order on approval and selection procedures for insolvency practitioners is an important step to a very good direction, industry experts say. ANAF is… Mai mult

Romania loses competition for a seat at UN Security Council. MAE Excuse: Campaign started too late

Romania lost to Estonia in the final vote to get the non-permanent member position within the UN Security Council for the period 2020-2021. On Friday,… Mai mult

Business internationalization / eMAG makes a step to entry five new international markets and targets a business of EUR 2 billion

eMAG hopes to get the opinion of the Hungarian Competition Council over the next two months for the acquisition of Extreme Digital, the market leader… Mai mult

"At a distance from books": 85,000 teachers (one third of educational staff) are graduates of distance learning

Approximately 85,000 teachers are graduates of distance learning (ID) programs, Education Minister Ecaterina Andronescu said at a meeting with school inspectors from Caras-Severin County. The… Mai mult

Mugur Isarescu: We should make a film for Viasat History about treasure in Moscow

A book should be written or a movie should be made and sent to Viasat History about a treasure evacuated to Moscow, as it is… Mai mult

Rhythm of commercial vehicle registration increases 3 times faster in Romania than EU average

Today, the European Automobile Manufacturers Association (ACEA) announced the status of commercial vehicle registrations in EU member states + EFTA in April and cumulated after… Mai mult

4.2%, from 3%: BNR has increased inflation forecast for 2019

The National Bank increased the inflation forecast for 2019 by 1.2 percentage points, from 3% to 4.2%. Also, the forecast for 2020 goes up by… Mai mult

Emergency procedure at European Court of Justice for Romania’s question: Are MCV recommendations mandatory?

The Court of Justice of the European Union (CJEU) has decided that Bihor Court’s request to be discussed under the emergency procedure, which is a… Mai mult

Government decides to increase external borrowing ceiling by EUR 4bn. It has consumed program resources for two years

The Government's agenda for Wednesday also includes the draft decision to increase the foreign loans ceiling for 2019 and 2020 by EUR 4 billion, up… Mai mult

Preparations for Summit in Sibiu - European Commission’s recommendations for EU's strategic agenda

On Tuesday, the European Commission presented a series of policy recommendations on how Europe can shape its future within an increasingly uncertain and multipolar world.… Mai mult

Meeting between Prime Minister Viorica Dancila and Chinese Prime Minister Li Keqiang: talks on a possible involvement of Chinese companies in PPP projects in Romania

On Friday, Prime Minister Viorica Dancila had a meeting with Chinese Prime Minister Li Keqiang, during which she stated her interest in involving Chinese companies… Mai mult

So-called "Belina Law" was adopted. Opposition will refer CCR: it turns Belina Island into a fiscal paradise

The Chamber of Deputies adopted on Tuesday the bill that provides for a derogating tax regime, such as tax exemptions or reductions, for land and… Mai mult

Deveselu shield is undergoing an upgrade process; the US provides alternative defence capabilities with THAAD systems

Aegis Ashore anti-missile system installed at Deveselu 99 Military Base will go in the next period through a previously planned upgrade process, the MApN announced… Mai mult

How 2019 began: Investments, allocations by 78.5% lower than the same period of 2018. 21% decrease in co-financing for attracting European funds

The consolidated general budget recorded a deficit of 0.5% of GDP in the first two months of 2019 namely RON 5.2 billion, a "performance" only… Mai mult

Romania's GDP exceeded Portugal’s in 2018: which has a population two times lower and a GDP/inhabitant twice as high

Romania's economy exceeded, at current prices in euros, Portugal's economy in 2018, a country with a population and a surface two times smaller as Romania.… Mai mult