The FDI dropped by 13.6 per cent to EUR 1.917 bln last year compared to 2010, thus reaching the lowest level in nine years, lower than the EUR 1.946 bln level registered in 2003, the National Bank of Romania (BNR) data shows. According to that data, equity stakes consolidated with the estimated net loss amounted to EUR 1.430 bln, while intra-group loans totalled EUR 487 M.
The highest FDI level was registered in 2008 – EUR 9.496 bln. Romania registered yearly FDI growth from 2003 to 2007. The FDI reached EUR 5.183 bln in 2004, EUR 5.213 bln in 2005 and EUR 9.056 bln in 2006. In 2007 the FDI dropped to EUR 7.25 bln, then registered a record level in 2008. Then the FDI deteriorated, falling steeply to EUR 3.48 bln in 2009 and EUR 2.2 bln in 2010.
Non-residents’ direct investments covered 33.7 per cent of the current account deficit last year.
The BNR report also shows that the current account registered a deficit of EUR 5.68 bln last year, up by 3 per cent compared to 2010, mainly because of a 22 per cent hike in income deficit. The trade balance had a slightly positive adjustment, registering a deficit of EUR 7.46 bln, down by 2 per cent compared to 2010. Last year exports totaled EUR 45 bln, while imports totalled EUR 52.48 bln.
Services registered a surplus of EUR 382 M, mainly backed by the transport sector whose surplus approaches EUR 1 bln. The tourism sector on the other hand registered a deficit that grew by 3 per cent to EUR 390 M last year, despite the fact that inflows surpassed EUR 1 bln compared to EUR 860 M in 2010.
Current transfers have reinforced their positive impact, their surplus growing by 3 per cent to EUR 3.7 bln compared to 2010.
External debt on the rise
The medium and long-term external debt totalled EUR 75.61 bln at the end of last year (representing 76.7 per cent of the total external debt), up by 3.7 per cent compared to the level registered at the end of 2010. The short-term external debt stood at EUR 22.994 bln (23.3 per cent of total external debt), up by 17.6 per cent compared to the level registered at the end of 2010. The medium and long-term external debt service ratio stood at 27.9 per cent in 2011, compared to 33.4 per cent in 2010. At the end of 2011, goods and services import cover stood at 7.5 months, down from 8.4 months at the end of 2010.