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EY: Seven out of ten investors anticipating an increase in Romania's attractiveness
Seven out of ten investors are anticipating an increase in Romania's attractiveness as an investment destination over the next three years, according to an EY study, published on Thursday.
Romania firmly maintains its resilient market position, despite a decline in foreign direct investment by 13% in 2023, capturing the confidence of investors who still see its potential, according to the EY Romania attractiveness study conducted in the first part of 2024.
According to the study, the year 2023 was marked by nuanced changes and a dynamic development in foreign direct investment (FDI), reflecting a general falling in the number of FDI projects in Europe by 4%.
The number of newly created jobs recorded a smaller decrease of 8% (from 6,460 to 5,935 between 2023 and 2022), which means larger projects on average. In Central and Eastern Europe, Hungary performed better, and Romania surpassed Greece and Bulgaria in terms of the number of FDI projects in 2023. In addition, Romania ranks fifth in terms of the average number of jobs created per project, surpassing strong competitors such as Poland.
Almost half (46%) of the executive leaders interviewed in the study believe that Romania has remained a robust and resilient market for investments in 2023, mentioning that they plan to consolidate or expand their operations here in the near future.
The favourable prospects are recognised by 67% of investors, who foresee an increase in Romania's attractiveness as an investment destination over the next three years. Romania stands out for surpassing Greece and Bulgaria in terms of the number of FDI projects and for ranking fifth in Central and Eastern Europe in terms of the average number of jobs created per project. Access to non-reimbursable financing is considered a decisive factor by 72% of investors. Sectors of interest include software and IT services, electronics, transport and logistics, which dominate in attracting foreign direct investment. The integration of emerging technologies and access to a well-trained workforce are essential, thus strengthening Romania's position as an attractive destination for sustainable investments with significant long-term impact, according to EY Romania official Bogdan Ion.
According to the research, Bucharest continues to dominate as the main destination for FDI, with a substantial share of 40%. Iasi and Timisoara got three investment projects each, and Cluj-Napoca and Brasov two each.
However, compared to last year's data, this year's investment pattern suggests a departure from the attention traditionally paid to large economic hubs, signalling a wider dispersion of projects across cities.