RRI Live!

Listen to Radio Romania International Live

Romania sees fall in foreign investment

Direct foreign investments in the Romanian economy dropped by more than a third last year.

Photo: pixabay.com
Photo: pixabay.com

, 01.10.2024, 13:50

The National Bank of Romania announced a significant drop in direct foreign investments last year compared with 2022. Their net flow in 2023 reached almost 6.75 billion euros, down 36.3% compared with the record level recorded in the previous year. According to Central Bank experts, this is in line with an international trend and can be mainly attributed to economic uncertainties and geopolitical tensions, especially in the context of the extended war in Ukraine and the conflict in the Middle East, which has made foreign investors adopt a more cautious approach. Their reticence, others say, was amplified by what some describe as the problems of Europe’s French-German economic engine.

The main areas that attracted foreign investments in Romania were industry, financial mediation, insurances and trade, and the total of direct foreign investments absorbed by the Romanian economy reached 118 billion euros at the end of 2023. Financial analyst Adrian Codirlaşu, the vice-president of CFA Romania, notes that this downward trend continued in 2024, amounting to 800 million euros less. Experts say it’s a gap that could be filled by domestic investment.

According to the relevant minister Adrian Câciu, the total amount of investments from the Romanian state, financed either by national funds or European non-reimbursable funds or by the National Recovery and Resilience Plan, amounts to 155 billion euros, around a half of GDP. The government recently announced the launch of a package of strategic programmes to develop the economy, and the most important is the national programme to support big industry worth 1 billion euros. A state aid scheme worth 500 million euros is also envisaged, as well as tax reliefs for strategic investments of over 150 million euros in the processing industry. The beneficiary must create directly at least 250 new jobs and develop in the regions with a GDP level below the national average.

The government also promised 250 million euros per year for companies investing in the production of industrial raw material. All this, the authorities admit, cannot be achieved without a public-private partnership. They also warn that Romania will have to continue borrowing in order to carry through the major projects it has begun, including the building of motorways, hospitals, stadiums and new sports facilities, the refurbishment of schools and the modernisation of ports and railways, but say loans will be reimbursed naturally, through what they call economic ecosystems created by these investments.

Tags:
NATO Secretary General Mark Rutte (Source: NATO)
Today in the News Tuesday, 05 November 2024

NATO must stay united

NATO will work with the winner of the US elections, whoever that person may be and will do its best to stay united, NATO secretary general Mark Rutte...

NATO must stay united
Maia Sandu (Photo: presedinte.md)
Today in the News Monday, 04 November 2024

Moldova stays on path to Europe

Moldova’s pro-European president Maia Sandu won a new  4-year term in Sunday’s second round run-off, with over 55% of the votes cast in the...

Moldova stays on path to Europe
The head of the Permanent Electoral Authority (AEP), Toni Grebla
Today in the News Monday, 04 November 2024

Election campaigns in Romania

    The campaign for the general election in Romania started last week, at midnight on Thursday, and will end on 30 November. During this...

Election campaigns in Romania
November 1 - National Radio Day
Today in the News Friday, 01 November 2024

Radio Romania 96

Radio Romania has celebrated 96 years since it first entered the listeners houses from Romania and abroad. On November 1 1928 the Romanians were able...

Radio Romania 96
Today in the News Thursday, 31 October 2024

Romanians’ concerns

Romanians and Austrians are the most satisfied with their lives among the inhabitants of Central and Eastern Europe, but the former are significantly...

Romanians’ concerns
Today in the News Thursday, 31 October 2024

Republic of Moldova, crucial final

On November 3, the citizens of the Republic of Moldova have to choose, for the position of head of state, between the pro-European Maia Sandu, the...

Republic of Moldova, crucial final
Today in the News Wednesday, 30 October 2024

Drones, a security issue

The Romanian Ministry of National Defense has placed under decisional transparency a bill that improves airspace security measures. The bill, which...

Drones, a security issue
Today in the News Wednesday, 30 October 2024

The Fugitive Law is constitutional

The Constitutional Court of Romania (CCR) has rejected the referral of the High Court of Cassation and Justice (ICCJ) in relation to the so-called...

The Fugitive Law is constitutional

Partners

Muzeul Național al Țăranului Român Muzeul Național al Țăranului Român
Liga Studentilor Romani din Strainatate - LSRS Liga Studentilor Romani din Strainatate - LSRS
Modernism | The Leading Romanian Art Magazine Online Modernism | The Leading Romanian Art Magazine Online
Institului European din România Institului European din România
Institutul Francez din România – Bucureşti Institutul Francez din România – Bucureşti
Muzeul Național de Artă al României Muzeul Național de Artă al României
Le petit Journal Le petit Journal
Radio Prague International Radio Prague International
Muzeul Național de Istorie a României Muzeul Național de Istorie a României
ARCUB ARCUB
Radio Canada International Radio Canada International
Muzeul Național al Satului „Dimitrie Gusti” Muzeul Național al Satului „Dimitrie Gusti”
SWI swissinfo.ch SWI swissinfo.ch
UBB Radio ONLINE UBB Radio ONLINE
Strona główna - English Section - polskieradio.pl Strona główna - English Section - polskieradio.pl
creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti
italradio italradio
Institutul Confucius Institutul Confucius
BUCPRESS - știri din Cernăuți BUCPRESS - știri din Cernăuți

Affiliates

Euranet Plus Euranet Plus
AIB | the trade association for international broadcasters AIB | the trade association for international broadcasters
Digital Radio Mondiale Digital Radio Mondiale
News and current affairs from Germany and around the world News and current affairs from Germany and around the world
Comunità radiotelevisiva italofona Comunità radiotelevisiva italofona

Providers

RADIOCOM RADIOCOM
Zeno Media - The Everything Audio Company Zeno Media - The Everything Audio Company