The net foreign direct investments (FDI) to Romania (inflows minus outflows) contracted by 3% y\/y to EUR 7.0 billion in 12 months to June 2024, despite the 15% y\/y advance to EUR 3.2 billion in Q2, according to data published by the statistics office INS.<\/p>\n
The gross inflows of FDI were roughly the same, EUR 7.0 billion (-16% y\/y) in the 12 months, because the FDI of Romanian companies abroad was only EUR 24 million.\u00a0<\/p>\n
The gross FDI to Romania in 12 months to June accounted for 2.0% of the period\u2019s GDP, down from 2.8% one year earlier. It thus covered only less than a quarter of the country\u2019s 7.5% of GDP CA deficit.<\/p>\n
On the upside, the net inflows of new equity (not including reinvested earnings) have nearly doubled (+90% y\/y) to EUR 2.6 billion in 12 months to June 2024, when they accounted for over one-third of total net FDI.<\/p>\n
The volume of reinvested profits dropped by 12% y\/y but accounts for the largest part of total net FDI: EUR 4.5 billion.<\/p>\n
The net borrowing of FDI companies from their parent groups was negligible during the 12 months to June 2024, only EUR 93 million.<\/p>\n