#countryfocus | How foreign direct investments help Romania’s economy

Ovidiu Posirca 25/05/2017 | 16:01

The flows of foreign direct investments (FDI) are starting to pick up once again in Romania, with EUR 4 billion being attracted last year alone. The good macroeconomic picture and a stable political framework are some of the ingredients that help the Romanian economy stand out in the region, according to commentators.

Meanwhile, the companies created with FDI in Romania have higher expenses for employees, but their productivity is also two times bigger in firms with foreign capital, says a report published on May 25 by the Foreign Investors’ Council and the University of Economic Studies in Bucharest.

The study points out that the impact of the FDI at a microeconomic level manifests itself starting from the financial capital provided by the multinational firm and going through the transfer of technology and innovation – enhanced by research and development activities; by exposing local firms to a set of management abilities, of marketing and entrepreneurship skills that were insufficiently developed or missing, but also through the development of the human capital.

The report notes that the stock of FDI in Romania grew around 12 fold in Romania in the 1999-2015 period, posting a compounded annual growth rate of 15.6 percent.

Country Focus Community Forum

The latest data coming from PM Sorin Grindeanu show that FDI in Romania grew by one quarter to EUR 1 billion in the first three months compared to the same period of last year.

The growth of FDIs will be one of the main topics of the Country Focus Community Forum, the 2-day event organized by Business Review magazine on June 13-14 in Bucharest.

The event will be attended by high-level executives, entrepreneurs, officials and investors from the strongest foreign communities in Romania.

 

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