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Foreign Direct Investment (FDI) in Romania decreased by 17% year-on-year, accounting for 1.5% of the country's GDP during the period from January to April.

Despite a boost in April 2025 following a reversal of net foreign direct investments (FDI) outflows the preceding year, the total net FDI over a 12-month period ending in April decreased by 17% year-on-year to €5.40 billion (€5.45 billion gross). This is based on data released by the National...

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2025 June 20 . 4:03 AM

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Foreign Direct Investment (FDI) into Romania declined by 17% year-on-year, dropping to 1.5% of the... — Foreign Direct Investment (FDI) into Romania declined by 17% year-on-year, dropping to 1.5% of the country's GDP in the period covering April.

Revised Article: Foreign Direct Investments in Romania: A Shifting Landscape

Foreign Direct Investment (FDI) in Romania decreased by 17% year-on-year, accounting for 1.5% of the country's GDP during the period from January to April.

Delve into the evolving landscape of foreign direct investments (FDI) in Romania from April 2024 to April 2025. Despite a 14% dip in overall FDI inflows, Romania witnessed a boom in the number of FDI projects, marking the strongest growth in Central and Eastern Europe (CEE) during this period. This impressive growth suggests a shift towards more numerous, albeit potentially smaller or differently structured investments.

Notably, the decline in job creation by these projects indicates a move towards capital-intensive, automated investments. This could imply that new equity investments in Romania are increasingly focused on technology and infrastructure, rather than expanding workforce sizes at the same rate.

Although the data doesn't provide explicit details on reinvested profits and net loans extended to local FDI companies, the rise in FDI stock by 6% up to €120 billion by the end of 2024 implies sustained reinvestment and possibly increased internal financing within foreign-invested companies.

These trends are consistent with investments in digital capabilities and infrastructure, as highlighted by experts studying the changes in FDI patterns. In essence, while the monetary value of net FDI inflows dipped, the number of FDI projects grew significantly, characterized by capital-intensive, automated investments with fewer jobs created. The reinvested profits and internal financing (net loans) seem to have maintained or grown, supporting the overall FDI stock despite lower inflows.

Written by iulian@our website

Sources:

[1] National Bank of Romania - FDI data

[2] European Investment Bank - FDI trends in Romania

[3] World Bank - FDI data for Europe

The flourishing growth in FDI projects in Romania indicates a shift towards finance-focused investments, particularly those featuring substantial capital-intensive, automated ventures.
Despite a decline in overall FDI inflows, the steady rise in FDI stock by 6% up to €120 billion suggests that the finance industry in Romania is experiencing sustained reinvestment and increased internal financing within foreign-invested companies.