Foreign Direct Investment in Romania in 2016

The results of the 2016 Foreign Direct Investment statistical survey were published on September 29, 2017. The National Bank of Romania, in cooperation with the National Institute of Statistics, conducted the statistical survey regarding the foreign direct investment (FDI). The major goal of the statistical survey was to determine the FDI stock as of 31 December 2016 and the FDI flows during the 2016 financial year into the resident direct investment enterprises.

The FDI Survey was conducted in compliance with the methodological requirements of the International Monetary Fund Balance of Payments and International Investment Position Manual, Sixth Edition (BPM6).

FDI net flow in 2016 stood at:

EUR 4517 million, of which:

EUR 4341 million – equity stakes (enterprises’ equity worth EUR 3203 million, plus reinvested earnings worth EUR 1138 million);

Equity includes FDI enterprises’ equity participation worth EUR 3,203 million, plus reinvested earnings worth EUR 1,138 million. Reinvested earnings resulted from the net earnings of profitable FDI enterprises amounting to EUR 7,410 million, less the distributed dividends worth EUR 3,149 million and the 2016 loss of EUR 3,123 million incurred by loss-making FDI enterprises. Calculations are made in compliance with the international methodology for determining the reinvested earnings of FDI enterprises (BPM6).

EUR 176 million – net credit from foreign investors;

In 2016, FDI net flow went primarily to manufacturing (EUR 2,021 million), while the main sub-sectors benefiting from foreign direct investment were transport equipment (EUR 928 million), oil processing, chemical, rubber and plastic products (EUR 352 million) and metallurgy (EUR 242 million). Other economic activities which received large FDI inflows were financial intermediation and insurance (EUR 800 million) and trade (EUR 609 million).

FDI stock as at 31 December 2016 amounted to:

EUR 70113 million, of which:

EUR 48964 million – equity stakes, including reinvested earnings (69.8 percent);

EUR 21149 million – net credit from foreign investors (30.2 percent);

As at end-2016, final FDI stock amounted to EUR 70,113 million. The result was calculated by adding to the final FDI stock of the previous year the FDI net flow and the positive/negative adjustments arising from revaluations of foreign currency assets – following the changes in the exchange rate, the revaluation of some tangible fixed asset prices, as well as the changes in the market value of listed FDI enterprises – the changed accounting treatment of the initial stocks and data corrections in the previous statistical reports.

Income from FDI in 2016

Net earnings from equity participation were EUR 4287 million, representing the net profit of FDI enterprises, tantamount to EUR 7410 million, less the losses incurred by loss-making FDI enterprises worth EUR 3123 million.

Net income from interest computed by subtracting from the interest received by foreign direct investors on loans granted to their enterprises in Romania – either directly or via fellow companies from the interest paid by foreign direct investors for the loans received from their enterprises in Romania – either directly or via fellow companies, stood at EUR 782 million.

For further information: Foreign Direct Investment in Romania in 2016