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Foreign Direct Investments Exceeded Remittances of Romanian Expats

Central bank statistics show foreign direct investment in the fist five months of the year exceeded remittances from Romanian expats for the first time.
Foreign Direct Investments Exceeded Remittances of Romanian Expats
Oana Gavrila
31 iul. 2017, 17:48, English

The two indicators have the financial crisis as a common denominator, said central bank adviser Adrian Vasilescu.

Before the crisis of 2008-2010 and afterwards, including in 2016, remittances were higher than foreign direct investments in Romania and Romanians working abroad were this considered the biggest “foreign” investors in the country.

“From 2005 until 2008, Romanians living and working abroad sent home more an more money, reaching a peak of EUR6.3 billion in 2008. After that, some lost their jobs and their living costs grew. After they rebounded, they took their families abroad with them and their costs of living grew and remittances dwindled,” explained Vasilescu.

Central bank data shows foreign direct investments reached EUR1.444 billion in January-May 2017, while remittances stood at EUR1.425 billion, or 98.6% of FDI.