The Foreign Investors Council (FIC) has released the latest edition of its annual analysis on the evolution of foreign direct investment (FDI) in Romania for 2024-2025. According to the report, current trends reflect a shift in investor strategy, moving from rapid expansion toward consolidation and optimization. Foreign-owned companies remain a cornerstone of Romania’s economy, contributing over 70% of goods exports and supporting productivity growth amid economic pressures. In 2024, the average productivity of foreign-owned companies reached €210,900 per employee.

In 2024, FDI in Romania entered a new phase, shaped by a more cautious global environment and rising domestic economic pressures. Although capital flows moderated compared to 2023, the cumulative FDI balance continued to grow, reaching €125 billion.

FDI is increasingly taking more flexible forms of financing, with a focus on financial services and energy, highlighting the growing maturity of the local market and investors’ adaptation to new economic conditions. Financial intermediation and insurance attracted €1.6 billion, representing 29% of total inflows, while energy investments in electricity, gas, and water reached €856 million—surpassing manufacturing (€212 million) for the first time.

The investment structure also points to significant development opportunities in high-value-added sectors such as energy, technology, research, and green industries. Reviving greenfield investments and attracting innovative projects can boost Romania’s economic competitiveness and productivity growth.

Regional development continues to represent a major growth opportunity, with investment expansion beyond large urban centers contributing to more balanced and inclusive economic development.

Ruxandra Băndilă, Executive Director of the FIC, stated: “Looking ahead, Romania has the opportunity to capitalize on this transition stage through policies that strengthen investor confidence, ensure predictability, and support quality investments. These measures can accelerate convergence with the European Union and promote long-term sustainable economic growth.”

The analysis offers several recommendations to accelerate investment attraction:

• Develop an integrated strategy that maintains cost advantages while complementing them with investments in transport and digital infrastructure, skilled human capital, and innovation.

• Transition toward a productivity- and innovation-based economy, supported by high-value-added investments and technology—for example, advanced electronic components, biotechnologies, renewable energy equipment production, or other sectors aligned with European long-term development strategies.

• Encourage geographical rebalancing of FDI through targeted incentives for counties with low levels of foreign capital.

• Implement targeted sectoral strategies and integration into European value chains, attracting investments in strategic sectors to strengthen local production and Romania’s integration into EU value chains, with positive trade balance effects.

• Strengthen institutional capacity and regulatory predictability through fiscal stability, administrative digitalization, and reduced bureaucracy.

The report concludes that Romania has strong investment potential, but realizing it depends on institutional coordination, ongoing dialogue with the private sector, and active policies aligned with European priorities.