Romania faces sharp decline in foreign direct investment

Romania is facing a significant downturn in foreign direct investment (FDI). Data from the first half of 2026 shows non-resident direct investments fell to 669 million euros, an 82% decrease compared to 3.72 billion euros during the same period in 2025. In the second quarter of 2026, the investment flow was negative, reaching minus 521 million euros, the lowest quarterly level since 2013.

While the National Bank of Romania (BNR) notes that some of this decline may be due to seasonal and accounting factors, such as dividend distributions, analysts point to a deeper issue. Reinvested profits have reached a negative balance, suggesting a reduction in the operational profitability of foreign-capitalized companies rather than just the repatriation of dividends.

In response to the competitive European investment landscape, Daniel Constantin, president of the Romanian Agency for Investments and Foreign Trade (ARICE), is addressing the country's economic diplomacy. ARICE is tasked with promoting Romania as an investment destination, identifying potential investors, and supporting Romanian companies in international markets.