fbpx Modifica setari cookieuri


Deleting the red lines in order to re-invent Europe

This article was written on April 15 and has appeared in the May 2020 issue of the publication “Cronicile Curs de Guvernare”. As such, it… Mai mult

Surprise in budget implementation for first 4 months: revenues in April were on the rise. Budget deficit – reached 2.5% of GDP

The general consolidated budget registered for the first four months of the current year a deficit of almost RON27 billion, equivalent to 2.48% of GDP… Mai mult

The Monkey in its Labyrinth

Covid is a curse which helps the Romanian economy: it opens no new roads for us but closes the old ones and forces us to… Mai mult

Industrial production decreases for the 8th month in a row. -3.1% in January

According to the data communicated by the NIS, in January 2020, Romania registered a new decrease in monthly industrial production, by -2.4% in gross series… Mai mult

VIDEO / Spring, first Dacia electric model, enters series production as of 2021

Dacia-Renault presented its “show car” Dacia Spring, “which prefigures the first 100% electric model of this brand” and will enter series production in 2021, according… Mai mult

Romania of investments in a European context: On the list of declines, but still ranking in the first third of it

de Marin Pana , 23.5.2018

Last year, total investment at the national level (both from the public and private sources) in the EU member states amounted to almost EUR 3,100 billion.

Constructions accounted for about half of this amount, machinery, equipment and systems for 31% and intellectual property rights for 19%.

Noteworthy, investments in intellectual property rights, quasi-inexistent in Romania, recorded the highest growth over the last ten years, according to data published by Eurostat.

Overall, at the EU level, the investment rate has fallen from 22.4% of GDP in 2007 to only 20.1% of GDP in 2017. The decline was even more pronounced in the Eurozone (from 23.2% to 20.5% %).

The good part:

Last year, the highest investment rates (gross capital formation) have been recorded in the Czech Republic (25.2%), Sweden (24.9%) and Estonia (23.7%).

With 22.6%, and along with Finland, Romania ranks in the first third of the list (position 7-8), after Austria (23.5%), Ireland (23.4%) and Belgium (23.3%), but ahead of France (22.4%) and Hungary (21.5%).

Share of investments in GDP graph:

At the opposite end, there were countries like Greece (12.6%, far from the other European countries), Portugal (16.2%), the UK (16.9%), Luxembourg (17.0%), Italy (17.5%) and, very interesting, Poland (17.7%). It should also be reminded that only four countries, Sweden, Austria, Germany and, marginally, Belgium have increased their investment rate since 2007.

And the bad part …

The largest declines in investments relative to GDP have occurred over the last decade in Latvia (-16.5 percentage points), Greece (-13.4 pp) and Estonia (-12.9%).

Unfortunately, Romania ranks fourth with -12.5 pp, ahead of Spain (-10.4%), Slovenia (-10.3 pp), Lithuania (-9.8 pp) and Bulgaria (- 9.1%).

Change in share of investment in GDP over the past ten years -chart

An attenuating circumstance is, however, that the starting data were very good (in the context of occupying business positions in a new EU member country with a relatively large market).

In 2007, with a 35.1% investment rate, we ranked second after Latvia (36.4%) and in 2008 we climbed to the first position, with 37.4%.


  • Evolution of investment rates in Romania (2007-2017, % of GDP)
  • Year
  • Investment rate


Noteworthy, though, this record level coexisted with a current account deficit of about 14% of GDP. Therefore, the massive adjustment in 2009 to only 25.4%, even though GDP lost a little more than seven percent.

After GDP returned in real terms to the 2008 level (in 2014), the peak was reached in 2015 (24.7%) and afterwards (also because of the decline in public investment) went down last year to 22.6%, the lower level in the last ten years, but still significantly above the EU average.

Mergeți în homepage ›

Publicat la data de 23.5.2018

Lăsați un comentariu


Renault holds expansion of its plant in Romania, 15,000 jobs cancelled at global level

"Putting capacity growth projects planned in Morocco and Romania on hold" - is one of the measures included in the draft plan of Renault Group… Mai mult

Romania is a net importer of electricity in 2020 as well

Romania imported an amount of electricity of almost 796 GWh in the first month of this year, by more than 36% above what it exported… Mai mult

Shareholders of Galati steel plant promise investments of one billion euros

GFG Alliance has committed to invest one billion euros to upgrade Galati steel plant in order to reduce emissions and increase production. Another EUR 1… Mai mult

Transport Ministry announces it has sent to Brussels the financing request for Sibiu - Pitesti highway

The Transport Ministry, as the Intermediate Body in Transport, approved the financing request for the project "Construction of Sibiu - Pitesti highway", Sections 1, 4… Mai mult

Romania and Juncker Plan: EUR 720 million attracted, of which 35% by Transgaz for BRUA

(The map of investment financed through Juncker Plan, by GDP share. Darker colours mean higher shares) The operator of national natural gas pipelines, Transgaz (TGN)… Mai mult

Top 3 reasons why young people leave Romania

Lack of trust in authorities, corruption and low living standards are the main reasons why young people leave Romania. The data is part of a… Mai mult

IMM Invest Romania – program implementing rules have been published

The Ministry of Public Finance announces that it has issued the methodological norms for the implementation of the Program for supporting small and medium-sized enterprises… Mai mult

Pollution import and car park expansion: comparisons with the other EU states

Romania is the EU country with the fewest cars in terms of the number of inhabitants, according to data recently published by Eurostat. We appear… Mai mult

Government is trying to save budget deficit: reductions in public administration system, cancellation of bonus for harmful conditions, excise duty on soft drinks

The Government is preparing the public for the first measures aimed at avoiding the budget slippage, which would be applied by the PSD-ALDE government. News… Mai mult

Laura Codruta Kovesi remains alone in the race for European Chief Prosecutor

French Prosecutor Jean-Francois Bohnert will be appointed as head of the European Financial Prosecutor's Office, a position for which he was heard on Thursday, 11… Mai mult

Romania - EU country with highest risk of dying in a road accident, Bulgaria is quickly decreasing number of victims since it built motorways

Romania recorded the highest road deaths in the EU also last year, with 96 deaths per one million inhabitants in 2018, almost double the EU… Mai mult

Latest developments in progress at Health Ministry: Differentiated wages based on performance, competitions organised at a regional level not by hospitals

Sorina Pintea announced on Thursday further new changes that will be brought to the functioning of the health care system, including new rules for employment… Mai mult

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