Foreign investors betting on Romania
Seven out of ten investors anticipate an increase in Romania’s attractiveness as an investment destination in the next 3 years, according to a study carried out by Ernst & Young
Sorin Iordan, 21.06.2024, 13:50
67% of investors in Romania anticipate an increase in the attractiveness of the country as an investment destination in the next 3 years, according to a study by the financial consulting and auditing company Ernst & Young. According to the document, between 2022 and 2023, the number of newly created jobs in Romania decreased by 8%, from 6,460 to 5,935.
By this indicator and in the general context of Central and Eastern Europe, in 2023 Hungary recorded better performances than Romania, but our country surpassed Greece and Bulgaria in terms of the number of foreign direct investment projects. At the same time, Romania ranks 5th in the ranking of the average number of jobs created per project, outranking stronger states, such as Poland.
The study also shows that 46% of the CEOs interviewed believe that last year Romania remained a robust and resilient market for investments and mentioned that they plan to consolidate or expand their operations here in the near future. Access to non-refundable financing is considered a decisive factor by 72% of investors. Sectors of interest to them include software and IT services, transport and logistics and electronic products, which dominate in attracting foreign direct investment. The integration of emerging technologies and access to a well-trained workforce are essential and strengthen Romania’s position as an attractive destination for sustainable investments with significant long-term impact, the study states.
Bucharest continues to dominate as the main destination for foreign direct investment, with a substantial share of 40%. Iasi, in the northeast, and Timisoara, in the west, attracted three investment projects each, and Cluj-Napoca, in the northwest, and Braşov, in the center, two each. However, the investment model suggests a shift from the traditional focus on large economic centers towards a wider dispersion of projects in smaller cities.
The main investors remained unchanged. Germany maintained its leading position, with 16 projects, the same as in 2022, followed by Great Britain and the United States of America, each with 6. According to the research, investors believe that Romania distinguishes itself by its advantageous fiscal system, by the adoption of emerging technologies and the availability of skilled labor.
The research was carried out online, between February and March 2024, on a representative sample consisting of 100 decision-makers at the level of executive management and the board of directors. Half of the respondents are located in Romania, 40% in other European countries, 6% in the USA, and the rest in Japan, China, Israel and the United Arab Emirates. (MI)
