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).\u00a0<\/p>\n
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.<\/p>\n
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.<\/p>\n
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).<\/p>\n
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.\u00a0<\/p>\n