The net foreign direct investments to Romania contracted by 29% y/y to EUR 4.87 billion in 12 months to March 2025, after a 33% y/y contraction (to EUR 1.67 billion) in Q1, according to data published by the National Bank of Romania (BNR). 

The net foreign direct investments accounted for only 1.4% of the GDP (latest data available) and covered only a small portion of the 9.3%-of-GDP current account (CA) deficit in the twelve months.

The figures are close to the net inflows of FDI (EUR 4.92 billion, -31% y/y in 12 months to March), as the investments of Romanian residents abroad were only EUR 46 million over the past 12 months.

Out of the EUR 4.9 billion net FDI to Romania in the twelve-month period, EUR 1.5 billion (-18.2% y/y) was new equity investments, and EUR 3.2 billion (-37% y/y) was reinvested earnings, and EUR 177 million was net borrowing of FDI companies from their foreign owners (from EUR 23 million net return of loans in the previous 12-month period).

Notably, the earnings derived by FDI companies in Romania have remained roughly constant at EUR 11-12 billion since 2022, while the reinvested earnings contracted from some EUR 7 billion to less than half (EUR 3.2 billion) in 12 months to March. Over the past 12-month period, the retention rate thus reached 27% (of total FDI earnings) from 50% in 2021- 2022. 

iulian@romania-insider.com

(Photo source: Romolo Tavani/Dreamstime.com)