BCR estimates a 10% increase in FDI in 2008, to €7.8 bln

“Considering the high value of foreign direct investments in the first two months of 2008 (€1.2 billion) and good perspectives for the rest of the year, we have revised our estimates for the end of the year, to €7.8 bln. This is based on income that could be earned from the privatization of 60 state-owned companies,” the report published on Monday states.

In addition to other competitive advantages, such as Romania’s accession to the European Union, BCR analysts stressed another argument in favor of the advance of FDI as “the attractive ratio between labor costs and productivity, according to the report.

“Even amid high salary growth, Romania will maintain its advantage on other Central and European countries in the coming years, as far as the ratio between labor costs and productivity,” BCR economists say.

However, they warned about salary demands in the private sector, which could lead to inflationist pressures. (NewsIn)