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
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)
- 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.