Romania’s Investment Continues to Grow
Statistics recently released from the Romania Central Bank show an impressive increase of foreign investment in the country during 2008. According to the Bank’s figures, foreign direct investment (FDI) totalled €9.02 billion in 2008 up from €7.25 billion in 2007, an increase of almost 25%.
Romania’s strategic position in the midst of central Europe, its skilled workforce and low labour costs remain key attractions for foreigners planning to set up in the country. In addition, corporate tax, levied at the flat rate of 16% in Romania, is one of the lowest in Europe.
2009 looks set to see continued inflows of FDI for Romania. According to the official government investment agency, ARIS, the latest investors include Procter & Gamble who have opened another factory with an initial investment of US$50 million, an amount that is expected to double during the factory’s 2nd stage; the Greek banking entities, Piraeus Bank and Banca Romaneasca, who have already opened a further 15 branches between them in 2009; and the Chinese tractor assembly company, Hozo-SHK Modern Agricultural Equipment due to set up in Brasov with an investment of €18 million and employment prospects of 500 people.
In late 2008, Renault established an auto engineering centre in Romania, the most important industrial plant in the country. Funds for this ambitious project run to €1.5 billion and have earnt Renault the accolade of ‘Foreign Investor of 2008’.
One of the main beneficiaries of high levels of FDI has been wages. Traditionally one of Europe’s poorest countries, Romania’s salaries are increasing in leaps and bounds. According to government statistics, gross average wages in December were 9.7% higher than those in the previous month’s and year-on-year figures show a salary increase of a massive 17.6%.
“Romania’s FDI inflows for 2008 are impressive,” comments James Gonzalez, Market Analyst at Obelisk Investment Property, “and the more or less constant stream of new investment shows that this pattern is likely to continue during 2009 in spite of the global economic slowdown.”
For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).
Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge from at http://www.absoluteguideseries.com
Email: info@obeliskinternational.com or visit our website: http://www.obeliskinvestmentproperty.com
For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com
Romania’s strategic position in the midst of central Europe, its skilled workforce and low labour costs remain key attractions for foreigners planning to set up in the country. In addition, corporate tax, levied at the flat rate of 16% in Romania, is one of the lowest in Europe.
2009 looks set to see continued inflows of FDI for Romania. According to the official government investment agency, ARIS, the latest investors include Procter & Gamble who have opened another factory with an initial investment of US$50 million, an amount that is expected to double during the factory’s 2nd stage; the Greek banking entities, Piraeus Bank and Banca Romaneasca, who have already opened a further 15 branches between them in 2009; and the Chinese tractor assembly company, Hozo-SHK Modern Agricultural Equipment due to set up in Brasov with an investment of €18 million and employment prospects of 500 people.
In late 2008, Renault established an auto engineering centre in Romania, the most important industrial plant in the country. Funds for this ambitious project run to €1.5 billion and have earnt Renault the accolade of ‘Foreign Investor of 2008’.
One of the main beneficiaries of high levels of FDI has been wages. Traditionally one of Europe’s poorest countries, Romania’s salaries are increasing in leaps and bounds. According to government statistics, gross average wages in December were 9.7% higher than those in the previous month’s and year-on-year figures show a salary increase of a massive 17.6%.
“Romania’s FDI inflows for 2008 are impressive,” comments James Gonzalez, Market Analyst at Obelisk Investment Property, “and the more or less constant stream of new investment shows that this pattern is likely to continue during 2009 in spite of the global economic slowdown.”
For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).
Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge from at http://www.absoluteguideseries.com
Email: info@obeliskinternational.com or visit our website: http://www.obeliskinvestmentproperty.com
For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com
Labels: FDI, investment, overseas, property, romania
posted by Alison Kane at 4:04 pm
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