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Foreign direct investments in Romania plunge 43% in the first six months, to EUR 2.89bn

Romania saw foreign direct investments (FDI) decrease by 42.99 percent in the first six months versus the same period in 2008, being still 21.9 percent larger than the current account deficit, according to data published by the central bank (BNR).

After the first two months of the year, FDI had risen by 38.1 percent, but by the end of the first quarter they posted a 13.9 percent annual decline. By May investments dropped even more, by 44.4 percent, but decrease than tempered to 42.02 percent in the first five months.

FDI amounted to 5.076 billion euros in the first half last year.

Capital participations accounted for 40.9 percent of the investments in the first semester, the reinvested profit for 9.4 percent and intra-group loans for the remaining 49.7 percent.

Romania's balance of payments deficit narrowed 73.3 percent in the first six months to 2.375 billion euros, as the commercial gap compressed significantly.

Last year, FDI in Romania rose by 24.5 percent to 9.02 billion euros, covering 53.5 percent of the current account gap.

Sursa: http://www.newsin.ro

Tags: percent first romania months investments bnr

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