FDI drop by 18.56 pct in first eight months of year

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Foreign direct investment dropped by 18.56 pct in the first eight months of the year, as compared to the similar period of 2016, to 2.518 billion euro, according to data of the National Bank of Romania (BNR), released on Monday.

“Foreign direct investment of non-residents in Romania amounted to 2.518 billion euro (as compared to 3.092 billion euro in the interval January – August 2016), of which equity participation (including net reinvested earnings) totalled 2.804 billion euro, and intra-group loans recorded a net negative value of 286 million euro,” reads the BNR press release.

The number of recently set-up companies with foreign capital increased, in the first eight months of the year, by 12 pct, Y-o-Y, to 3,951 units, reveal data from the National Trade Register Office (ONRC).

The 3,951 new companies had a subscribed share capital worth over 34.1 million dollars, up 14.4 pct as compared to January-August 2016.

With regard to August 2017, as compared to the same month of the previous year, the number of newly set-up companies went up 13.6 pct, to 449 firms.

In 2016, Romania recorded an all-time low of the last 18 years with regard to newly established firms with foreign capital. Thus, last year 5,348 such firms were set up, down from 5,831 in 2015. After 1991, most companies were founded in 2007, when over 15,000 such firms were registered. At the opposite end, the fewest were registered in 1995, respectively 3,400 units.

The social capital of the 5,348 firms was worth 40 million dollars, by 1.4 pct higher than in 2015.

From 1991 to 2016, a number of 209,814 firms with foreign venture capital were founded, the worth of the subscribed share capital amounting to over 44.8 billion euro.

Of the 209,814 firms, 43,627 have Italian capital, but the Dutch companies have the largest amount of share capital, of 8.71 billion euro, in approximately 4,919 firms.