Foreign direct investments (FDI) totalled €9.5 billion last year, according to data provided by the National Bank of Romania (BNR). This figure was revised upward from the preliminary data in February, which estimated FDIs at €9.02 bln.

Over half of last year’s investments (51.3 percent), namely €4.87 bln, were net participations in the share capital of Romanian companies. Also, the net credit received by companies from foreign direct investors, including from within the group, made up 48.7 percent of the net FDI flow, namely €4.62 bln.
Investors targeted the manufacturing industry (31.3 percent of total FDIs), with metallurgy (6.9 percent) and the food, beverage, and tobacco industry (4.6 percent) as its most attractive segments. Significant amounts were invested in activities related to financial brokerage and insurance (20.5 percent of total FDIs), construction and real estate transactions (12.6 percent), trade (12.4 percent), and IT&C (6.7 percent).

Due to the financial crisis, FDIs in Romania dropped sharply. Only €3.15 bln were invested in this country in the first eight months of this year. Overall, FDIs are estimated to amount to €5 bln this year, half of last year’s level.

The top five countries in terms of share in total FDIs at the end of 2008 are: Austria (18.8 percent, compared to 21.4 percent in 2007), the Netherlands (17.2 percent, compared to 16.3 percent in 2007), Germany (15.4 percent, compared to 11.7 percent in 2007), France (8.8 percent, the same as in 2007), and Italy (7.3 percent, compared to 6.1 percent in 2007).

Source: Business Standard

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