Foreign investments in Romania increase for the first time since the end of 2008

The Foreign Direct Investments (FDI) attracted by Romania amounted to a total EUR 941 M during the first eight months of the year, and increased for the first time since the end of 2008. In the same interval of last year, FDI reached EUR 607 M.

The FDI attracted by Romania were on a declining trend starting with late 2008 and had a 9-year minimum in 2011, under the level registered in 2003, of EUR 1.946 bln. Between 2003 and 2006 Romania reported each year an increase of FDI, which reached EUR 5.183 bln in 2004, EUR 5.213 bln in 2005 and EUR 9.056 bln in 2006. The foreign capital invested in Romania diminished in 2007 to EUR 7.25 bln, followed by an increase to the peak level of 2008. But as of 2009, the indicator’s value deteriorated as FDI collapsed to EUR 3.48 bln, followed by EUR 2.2 bln in 2010.

National Bank of Romania (BNR) data also reveal that, in the first eight months of the year, the current account of the balance of payments had a deficit of EUR 3.12 bln, 23 pc smaller than a year ago, influenced by increases of services and current transfers, and a decline of incomes. The balance of current transfers registered an increase of EUR 462 M, services went up EUR 418 M, while incomes diminished by EUR 274 M. “The current account deficit during January-August 2012 was financed in a 30.1 pc proportion by direct investments made by non-residents in Romania, which amounted to EUR 941 M in total,” reads the BNR press release. The medium- and long-term foreign debt was EUR 77.22 bln at August 31 (78.8 pc of the total foreign debt), up 1.7 pc against December 31, 2011. The short-term foreign debt reached EUR 20.77 bln (21.2 pc of the total foreign debt), down 8.9 pc from the end of last year. The current account of the balance of payments closed last year with a deficit of EUR 5.68 bln, up 3 pc compared to 2010.

Source: nineoclock

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