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Romanian National Bank - Foreign Direct Investment - 2009.

The statistical survey regarding foreign direct investment (FDI) was conducted by the National Bank of Romania and the National Institute of Statistics. The major goal of the statistical survey was to determine the FDI stock as of 31 December 2009 based on the stock outstanding at the beginning of 2009 and on the flows during 2009 financial year into the resident direct investment enterprises.

1. FDI net flow in 2009 stood at:

EUR 3,488 million of which:* EUR 1,729 million - equity stakes* (49.6 percent);* EUR 1,759 million - net credit from foreign investors (50.4 percent).

2. FDI stock as of 31 December 2009 amounted to:

EUR 49,984 million, of which:* EUR 35,600 million equity stakes, including reinvested earnings (71.2 percent);* EUR 14,384 million net credit received from foreign investors (28.8 percent).

2.1. FDI stock by main economic activity

By economic activity (according to NACE Rev. 2), the bulk of FDI went to manufacturing (31.1 percent of total), out of which the largest recipients were: oil processing, chemicals, rubber and plastic products (6.3 percent), metallurgy (5.2 percent), transport means (4.7 percent), food, beverages and tobacco (4.1 percent) and cement, glassware, ceramics (3.3 percent). Despite their large potential, certain sectors, such as textiles, wearing apparel and leather goods (1.4 percent of total FDI), still hold a rather small share of FDI.

FDI (table)

Apart from industry, activities that have also attracted significant FDI are financial intermediation and insurance, which include banks, non-bank financial institutions, and insurance corporations and account for 19 percent of total FDI stock, construction and real estate transactions (12.9 percent), trade (12.3 percent), and information technology and communications (6.5 percent).

Tangible and intangible fixed assets stood at EUR 23,272 million at end-2009 and held 46.6 percent of total FDI, thus leading to considerable foreign direct investment stability.

Substantial FDI in tangible and intangible fixed assets was recorded in industry (24.3 percent of total FDI), namely manufacturing (17.3 percent), construction and real estate transactions (7.4 percent), trade (6.2 percent), information technology and communications (3.5 percent).

2.2. FDI stock by development region

From a territorial point of view, FDI went mainly to Bucharest-Ilfov region (63.4 percent). Other development regions benefiting from significant FDI inflows were: CENTER region (7.4 percent), SOUTH region (7.2 percent), WEST region (6.2 percent) and SOUTH-EAST region (5.9 percent).

EUR million% of total FDI (table)

2.3. FDI stock by country of origin

The distribution of FDI stock by country of origin took into account the country of origin of the direct holder of at least 10 percent in the share capital of resident FDI enterprises on an C[pounds sterling]immediate country basisC[yen].

Top 5 countries by share of FDI stock as at 31 December 2009 were the Netherlands (21.8 percent, up from 17.2 percent in 2008), Austria (18.1 percent of total stock at the end of 2009, down from 18.8 percent a year earlier), Germany (13.4 percent down from 15.4 percent in 2008), France (8.5 percent, the same as in 2007), and Greece (6.6 percent, staying flat year on year).

EUR million% of total FDI (table)

3. Types of FDI

The flow of equity stakes into FDI enterprises is divided into greenfield, mergers and acquisitions and corporate development.

In 2009, out of the total FDI equity flow, 98.3 percent (EUR 3,065 million) went to corporate development, 1.1 percent (EUR 34 million) were destined to mergers and acquisitions and only 0.6 percent (EUR 19 million) to greenfield investment.

The accumulation of foreign direct investment in enterprises established as greenfield investment companies, called greenfield enterprises, was highlighted in order to assess the lasting impact of greenfield investment on the economy.

The distribution of FDI stock in greenfield enterprises by main economic activity at end-2009 was as follows:

TOTAL FDI (table)

4. Exports and imports of FDI enterprises

The activity of direct investment enterprises as a whole had a positive impact on RomaniaCOs trade balance, its contribution to total exports and total imports standing at 69.8 percent and 60.1 percent respectively.

Exports (FOB)/ Imports (CIF) (table)

NOTE: Exports and imports are aggregated by the activity of companies, according to NACE Rev. 2 excluding exports and imports of NACE divisions (release 2): 84 Public administration and 97/98 Household activities.


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Publication:Romanian Central Bank News
Date:Feb 22, 2011
Previous Article:Romanian National Bank - Inflation Report, Summary - Feb 2010.

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