The National Bank of Romania has published the Annual Report on Foreign Direct Investment in Romania in 2017. According to the report, in 2017, FDI net flow stood at EUR 4,797 million, out of which:
- Foreign direct investors’ equity in direct investment enterprises in Romania worth EUR 3,968 million. Equity included equity participation in FDI enterprises worth EUR 2,235 million, plus reinvested earnings worth EUR 1,733 million. Reinvested earnings resulted from the after-tax profit of profitable FDI enterprises amounting to EUR 8,068 million, less the distributed dividends worth EUR 3,526 million and the loss of EUR 2,809 million of FDI enterprises that incurred losses in 2017. Calculations are made in compliance with the international methodology for determining reinvested earnings of FDI enterprises (BPM6).
- Net credit of direct investment enterprises from foreign direct investors, loans from fellow companies included, stood at EUR 829 million.
In 2017, FDI net flow went primarily to manufacturing (EUR 1,204 million). The main industrial sub-sectors benefiting from foreign direct investment were oil processing, chemical, rubber and plastic products (EUR 434 million), transport equipment (EUR 349 million) and metallurgy (EUR 193 million). Other economic activities which received large FDI inflows were financial intermediation and insurance (EUR 960 million), construction and real estate transactions (EUR 929 million) and trade (EUR 897 million).
The following sub-sectors reported the largest equity participation (capital increases): construction and real estate transactions (EUR 800 million), manufacturing (EUR 471 million) and professional, scientific, technical and administrative activities and support services (EUR 406 million).
The highest values for reinvested earnings were recorded by financial intermediation and insurance (EUR 665 million), trade (EUR 620 million) and manufacturing (EUR 505 million).
In 2017, the same as in the previous year, the intercompany net credit made a positive contribution (EUR 829 million compared to merely EUR 176 million in 2016). By economic activity of FDI enterprises, the main sectors that benefited from financing via intercompany lending in excess of EUR 200 million were construction and real estate transactions (EUR 423 million), trade (EUR 324 million) and manufacturing (EUR 228 million), out of which the largest recipient sub-sector was machinery and equipment (EUR 214 million).
As regards the FDI stock, as at end-2017, final FDI stock amounted to EUR 75,851 million. The result was calculated by adding to the final FDI stock of the previous year the FDI net flow and the other components leading to stock changes, namely 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.
Equity (including the accumulated reinvested earnings) of FDI enterprises amounted to EUR 52,746 million (69.5 percent of the final FDI stock) at end-2017 and net credit taken by direct investment enterprises from foreign direct investors, fellow companies lending included, came in at EUR 23,105 million, i.e. 30.5 percent of the final FDI stock.
For further information: Annual Report: Foreign Direct Investment in Romania in 2017