The Foreign Investors Council (FIC) has published the new edition of its annual analysis on the evolution of foreign direct investment (FDI) in Romania for the period 2024-2025. According to the FIC report, the current trend reflects a shift in investor strategy from rapid expansion to consolidation and optimization. Foreign-owned companies play a significant role in Romania's economy, contributing more than 701TPTP3T to exports of goods and ensuring that productivity growth rates are maintained in the face of economic pressures. In 2024, the average productivity of foreign-owned companies reached EUR 210,900 per employee.

In 2024, foreign direct investment in Romania entered a new phase, marked by a more cautious global environment and rising domestic economic pressures. Although capital inflows moderated compared to 2023, the cumulative FDI stock continued to grow, reaching EUR 125 billion.

Foreign direct investment is moving towards more flexible forms of financing, with a preference for investments in financial services and energy, reflecting the increased maturity of the local market and the adaptation of investors to new economic conditions. Financial intermediation and insurance attracted EUR 1.6 billion, accounting for 29% of total investment flows, while investment in electricity, gas and water reached EUR 856 million, exceeding for the first time investment in the manufacturing sector (EUR 212 million).

At the same time, the structure of investment points to significant opportunities for development in high value-added sectors such as energy, technology, research and green industries. Relaunching greenfield investments and attracting innovative projects can strengthen the competitiveness of the Romanian economy and boost productivity growth.

Regional development remains a major potential for growth, and expanding investment beyond large urban centers can contribute to more balanced and inclusive economic development.

The analysis makes a series of recommendations to accelerate investment attraction:

- An integrated strategy combining cost advantages with investments in transport and digital infrastructure, skilled human capital and innovation. Accelerate investment in critical infrastructure and regional connectivity.

- Transition towards a model based on productivity and innovation, supported by high value-added investment and technology - for example: advanced electronic components, biotechnology, renewable energy equipment production or other sectors of activity that are consistent with long-term European development strategies.

- Geographical rebalancing of FDI through targeted incentives for counties with low levels of foreign capital.

- Targeted sectoral strategies and integration into European value chains Attracting investment in strategic sectors can strengthen local production and Romania's integration into European value chains, with positive effects on the trade balance

• Consolidarea capacității instituționale și a predictibilității cadrului de reglementare – stabilitatea fiscală, digitalizarea administrației și reducerea birocrației.

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

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