Romanian Foreign Direct Investment Plummets 82% in First Half of 2026

Foreign direct investment (FDI) in Romania has seen a dramatic collapse, falling by approximately 82% in the first half of 2026. The total FDI reached only 669 million euros, a stark contrast to the 3.72 billion euros recorded during the same period in 2025, according to data from the National Bank of Romania (BNR).

BNR First Deputy Governor Leonardo Badea identified three primary reasons for this significant downturn. He cited the distribution of dividends as a major factor, though he noted its effects might partially correct in the latter half of the year. Additionally, reduced operational profitability, linked to an economic slowdown, and specific market conditions contributed to the decline.

Badea expressed concern over the implications of this trend, particularly the shift in financing towards instruments that increase external debt. He explained that FDI and European funds typically help finance the current account deficit without adding to borrowing. However, with FDI's decrease, financing is moving towards debt-generating sources.

To reverse this worrying trend and bolster international credibility, Badea emphasized the need for clearer government policies and the early finalization and adoption of the next year's budget. He highlighted that reinvested profits, a key component of FDI, registered a negative balance of 1.124 billion euros in the analyzed period, indicating that companies are distributing more profit than they are reinvesting.

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Nivelul semnificativ mai redus al ISD din semestrul I 2026 comparativ cu perioada corespunzătoare a anului anterior are trei explicații principale: prima este legată de distribuția dividendelor, iar efectele sale se vor corecta cel puțin parțial în a doua parte a anului, a doua ține de reducerea profitabilității operaționale (corelată cu încetinirea economiei), iar cea de-a treia este asociată unei conjuncturi specifice.