Downward FDI trend at the end of 2008

The year 2008 ended with a sharp slowdown of foreign direct investments (FDI), according to data provided by the National Bank of Romania (BNR). In December, investors brought a mere €384 million to Romania, the lowest monthly volume in all of 2008, considering that FDIs totaled €9.02 billion last year, up 24.45 percent year-on-year.

FDIs made up 53.5 percent of the current account deficit in 2008, up from the 43.5 percent level in 2007. The balance of payment deficit widened to €16.87 bln, up 1.2 percent from 2007, while the trade deficit widened 2.1 percent annually, to €18.19 bln. However, the growth pace of the trade deficit slowed in the past months, once the growth rate of imports slowed to 9.4 percent in 2008 and exports increased 13.8 percent compared to 2007, according to data published previously by the National Institute of Statistics (INS).

 

“In the long-run, all economic sectors are attractive. Romania continues to be attractive. The problem is liquidity, which is low. In the short term, I think the food industry and the energy sector could attract investments, even infrastructure, because we need highways. I estimate FDIs worth some €4.5-6 billion this year,” said the Chief Economist of Banca Comerciala Romana (BCR), Lucian Anghel.

 

Taguri: