Romania could attract 7.5bn-euro foreign investments

Romania could attract foreign direct investment worth 7.5 billion euros this year thanks to greenfield projects and big privatisation projects, reads a study of the European banking group Unicredit. The estimated level of foreign
investment to be attracted this year by Romania was revised upwards by a billion euros from Unicredit estimates made in May. Greenfield investments as well as hefty privatisation revenue could take foreign investments to a record level of 7.5 billion euros this year, against 5.2 billion euros in 2005 and 2004. On the other hand, Romania’s current account deficit will go up due to the increase in imports, which were spurred by investment projects in infrastructure being re-launched. Foreign deficit this year will reach 9.5% of the GDP (some 8.8 billion euros), according to Unicredit’s latest estimates. In comparison to the May forecast, estimates on Romania’s current account were revised upwards, from 9.2% to 9.5% of GDP; the unexpected increase in imports is considered to be responsible for this.