Romania beats European FDI trend with 16% project growth

Business Forum
Foreign direct investment (FDI) in Europe declined in 2025, marking a period of slowdown and structural transformation of the investment landscape.

The number of announced projects was 7% lower than in 2024 and remains significantly below peak levels, amid a combination of factors: moderate economic growth, high energy costs, geopolitical uncertainty and more difficult access to financing.

FDI is increasingly focused on less labour-intensive activities, with the number of jobs generated almost halving compared to the 2021 peak. This evolution reflects both a decrease in the number of projects (-15%) and a reduction in their average size, with jobs per project dropping from approximately 70 to 40. The share of large projects creating over 500 jobs fell to 30% (from 48% in 2021), confirming investors' orientation towards more automated and productivity-efficient projects.

"In 2025, foreign direct investment reflects a clear paradigm shift at European level, where investment decisions become more selective, and criteria related to competitiveness and predictability weigh more than in previous years," said Bogdan Ion, Country Managing Partner EY Romania and Moldova. "Romania's evolution - with a 16% increase in the number of projects and 39% in jobs generated, in a year when most European markets recorded declines - indicates a consolidation of its position in the region."

Against this difficult European backdrop, Romania stands out with an evolution above the regional average. In 2025, Romania ranked 11th in Europe and attracted 109 FDI projects, up 16% from the previous year, contrasting with the decline observed at European level. The number of jobs created increased by 39%, reaching 5,710. A defining element is the change in investment structure - expansion projects became dominant, surpassing new projects. The number of expansion projects grew from 31 in 2024 to 60 in 2025, a 94% increase.

At sectoral level, the Machinery and Equipment sector remained the largest with 17 projects (16% of total), followed by Software and IT services with 14 projects (13%), Transport and logistics with 13 projects (12%), and Transport manufacturers and suppliers and Agrifood sectors, each with 12 projects (11%). Geographically, Bucharest-Ilfov leads by number of projects with 45, but generates relatively few jobs (754), while regions in the West, Centre, North-West and South-West concentrate most of the jobs created.

RECOMMENDED
This overlooked region could shape Europes next growth story
Real estate

This overlooked region could shape Europe's next growth story

When international investors discuss Romania, the conversation often begins with Bucharest and increasingly includes cities such as Cluj-Napoca, Timișoara and Brașov. Yet one of the country's most compelling growth stories is unfolding further east.

Romania ranks 11th in Europe by number of FDI projects, says EY
Economy

Romania ranks 11th in Europe by number of FDI projects, says EY

Romania recorded strong performance in 2025 in attracting foreign direct investment (FDI), in contrast with the general trend in Europe, where the number of projects fell and job creation slowed. According to the Attractiveness Survey Romania 2026, conducted by EY Romania is consolidating its role in the region, but investors are becoming more cautious about future decisions.

Long-term thinking is becoming real estates biggest advantage
Real estate

Long-term thinking is becoming real estate's biggest advantage

At Bucharest Business Forum 2026, the closing panel brought together senior executives from residential, logistics, and asset management to explore how Romania can unlock its next phase of growth. Moderated by Ana Dumitrache, CEO, Olympian Parks, the discussion ranged from unlearning old market reflexes and rethinking “location,” to the disruptive impact of AI and the structural gaps still holding Romania back versus peers like Poland. Despite working in different segments, the speakers converged on a few core themes: long‑term value over short‑term volume, community and quality over simple density, and disciplined governance as the missing ingredient for Romania's full potential.

Romania climbs Europes investment rankings
Economy

Romania climbs Europe's investment rankings

Romania has risen in Europe's investment destination rankings, becoming one of the most attractive markets in the region alongside Poland for international investors, according to PwC Global CEO Survey 2026 data.

American property investors have yet to arrive in Romania
Real estate

American property investors have yet to arrive in Romania

European investors continue to lead commercial real estate investment across the continent, accounting for 48% of activity in Q1 2026, according to BNP Paribas Real Estate data. American investors follow with 31%, while Asia Pacific investors represent just 7% and Middle Eastern investors 2%.

Regional retail centres lead Romanias property investment in 2025
Real estate

Regional retail centres lead Romania's property investment in 2025

Shopping centres outside Bucharest were the most attractive real estate asset class for investors in 2025, accounting for almost 40% of the total transaction volume, according a new report by Cushman & Wakefield Echinox. Bucharest office buildings came second, with a 30% share in the total investment volume.

RECOMMENDED FROM THE HOME PAGE
Electrica secures grid permits for 700 MWh of storage
Energy

Electrica secures grid permits for 700 MWh of storage

Energy company Electrica informs investors and the capital market that it has obtained the technical grid connection permits (ATR) for 17 new battery energy storage projects (BESS), with a total capacity of approximately 700 MWh.

Energy

Romanian grid operator to support peak power consumption during heatwave

Romania's national electricity transmission network operator, Transelectrica, has halted scheduled maintenance shutdowns to ensure the grid operates at maximum capacity during an ongoing extreme heatwave. The preventive measures aim to mitigate operational risks associated with severe weather conditions.