A destination increasingly sought after by investors from Central and Eastern Europe, Romania is playing regionally well below the potential of the economy – argues Daniel Anghel, Country Managing Partner PwC Romania, in a new analysis.
Although it has the second largest territorial and population size after Poland and an economy that has massively recovered the difference from the European average, Romania is a regional actor with a still too small role.
Romania’s largest regional partners – Greece, Hungary, Poland, the Czech Republic and Bulgaria – increased their direct investments in our country by 64% between 2019 and 2024, up to a total of 10 billion euros.
In contrast, Romanian investments in the region remain at a very low level, although there has been a growth trend in recent years. The stock of investments made by Romanian companies in the five countries analyzed was 645 million euros at the end of last year.
The contrast between Romania and the countries in the region is stark. Our country attracts capital, but does not export enough of its own capital. This asymmetry is not only a statistical issue, but also one of economic influence and strategic positioning. The lack of Romanian champions with a solid presence abroad shows the current limits of capitalization, strategy, but also of support for internationalization, explains Daniel Anghel.
Romania – an actor with a still too small role in the region
An economic maturity test lies ahead of Romania and the key question is whether we will find the strength to transform current vulnerabilities into reforms and progress? After two decades of remarkable economic growth, GDP per capita at purchasing power parity rose from 35% to 79% of the EU average last year, a performance that confirms economic progress and improved living standards. Although development is uneven, it is remarkable that the economy has demonstrated resilience, despite the multiple global crises in recent years, and continues to grow in 2025, even if fiscal and budgetary problems have become more acute this year.
The premises for our country to become a robust, mature and diversified economy exist, but in order to translate them into action, we must resolve the fiscal and budgetary situation, continue to attract foreign direct investment, European funds and, above all, identify a clear reform strategy to relaunch economic growth and capitalize on the potential. From this perspective, Romania does not seem to be fully aware of the importance of the role it can play and has not even taken the first step of regional positioning and identifying opportunities in its geographical area.
We are used to capital flows and strong economic relations being with already traditional partners: such as Germany, France or Austria. But it is worth looking closer to the borders, as the surrounding states have already done, especially in a political and military context in which Central and Eastern Europe has become a key area both geostrategically and economically, due to the development of the last decades.
Analyzing economic relations and investment flows, it is seen that our country has become fertile ground for capital from Poland, the Czech Republic, Greece or Hungary, which have billions of euros invested in Romania, in energy, real estate, retail, FMCG or IT&C. The presence of companies from these countries confirms the attractiveness of the Romanian market, determined by the size of the economy, growth potential, workforce and geographical position, but it also shows at least two other important things – the surrounding states are looking to expand their businesses and want to gain regional influence and we should act in the same way. Although it has the second largest territorial and population size after Poland and an economy that has massively recovered the difference from the European average, Romania seems not to realize that it is an actor with a role that is still too small.
Romania, a top destination for investments from neighbors
Thus, if we look at Romania’s largest regional partners – Greece, Hungary, Poland, the Czech Republic and Bulgaria – we see that they have increased their direct investments in our country by 64% between 2019 and 2024, up to a total of 10 billion euros out of the total stock of foreign direct investments of 125 billion euros.
For example, Greek investments in Romania have increased by 170% in the last five years, boosted of course by the acquisitions made by the PPC group in energy, those in Hungary have advanced by 94%, those in Bulgaria by 90% and those in Poland by 84%.
As a result, for Greek and Bulgarian investors, Romania has become the second largest overseas investment destination, and for Polish and Hungarian investors it has reached the top 5.
Greece’s investments in Romania have reached 16% of total investments made abroad, and for Bulgaria, 11%. In turn, Hungarian investors have the most companies registered in Romania – over 15,300 in 2024, 10% more than in 2019. During the same period, the number of Greek companies increased by 17%, Bulgarian ones increased by 29%, and those with Polish shareholders recorded the strongest dynamics, rising by 56%.
From an industry perspective, Greek investors have had a significant presence in the real estate sector, and the entry of the energy group PPC into the Romanian market has brought a revival of interest in the Romanian market, with the energy sector in the spotlight, which has also attracted other investments from Greece in recent years.
The Czechs are also investing heavily in real estate and energy, while the Poles have been the most active on the transaction market, especially in recent years. Thus, more and more Polish companies listed or supported by international investment funds have discovered opportunities for strategic expansion in Romania. The areas in which they invest are diverse, from retail and the food industry, to tourism, energy, IT&C and manufacturing, with the largest Polish businesses in Romania being in the trade sector, through fashion retailers and the FMCG sector.
Although Bulgarian investments in Romania are lower than those of other countries in the region, their value almost doubled between 2019 and 2024, reaching over 650 million euros. Part of the Bulgarian investments came through private equity funds that have invested in Romanian companies in recent years.
Romania, a minor player in the region
In contrast, Romanian investments in the region remain at a very low level, although there has been a growing trend in recent years. The stock of investments made by Romanian companies in the five countries analyzed was 645 million euros at the end of last year. The most significant investments were in Bulgaria, at 300 million euros, but the amount represents less than half of Bulgarian investments in Romania.
Total Romanian investments abroad (not only in the states in our geographical region) are also very low. At the end of 2024, their stock represented 7.8 billion euros, but more than half (4.1 billion euros) were investments made in the country by Romanians through companies registered in other jurisdictions, according to NBR data. Thus, the total effective investments made abroad until last year were 3.7 billion euros.
By comparison, total Polish investments abroad amounted to 38.6 billion euros last year, Hungarian ones to 44.4 billion euros and Czech ones to over 70 billion euros, according to available statistics. Even investors from Bulgaria had investments abroad almost 5 billion euros higher than those of Romanians abroad, given that Romania’s economy is more than three times larger than that of its neighboring country.
The contrast between Romania and the countries in the region is stark. Our country attracts capital, but does not export its own capital sufficiently. This asymmetry is not only a matter of statistics, but also one of economic influence and strategic positioning. The lack of Romanian champions with a solid presence abroad shows the current limits of capitalization, strategy, but also of support for internationalization.
The Polish example
If we take the example of Poland, we see that in recent years the expansion of companies through exports and investments abroad has been carried out strategically and intensified with coherent government support. In recent years, Poland has made coordinated efforts to increase exports and expand the network of foreign trade offices to support Polish companies in new markets and to attract foreign direct investment, through the Polish Investment and Trade Agency.
This ability of Polish companies to reach markets not only in our geographical region, but also in the UK, the US or Australia is based on a mix of public policies that have generated a more stable, predictable and stimulating macroeconomic framework for development. In contrast, Romania faces fiscal pressures and external imbalances that limit its potential. Both economies depend on foreign investment and EU funds, but Romania’s structural weaknesses imply a higher risk. In short, politics influences the economy through stability, predictability and the ability to implement reforms.
Due to the presence in other countries, the profitability and financial stability of Polish companies are higher, and income flows from outside the country support the balance of payments, and the country’s economy becomes more competitive in the long term. Ultimately, the major difference comes from fiscal policies and political stability.
From a macroeconomic perspective, Romania and Poland have many similarities, having many similar figures, but also a very important difference – the balance of payments situation that reflects how much each country spends and how much it earns from its relationship with the outside world. While Poland had a current account deficit of 0.9% of GDP in September 2025, Romania had 8% of GDP, a record level in the EU. The main causes for Romania’s large current account deficit are high domestic demand, correlated with a very large budget deficit and low tax revenues. Poland, on the other hand, compensates with a surplus in services and significant inflows from European funds. It is clear that Romania needs fiscal consolidation and export-oriented policies.
Conclusion
Expanding the presence of Romanian companies across borders could bring multiple benefits: generating income flows from abroad would contribute to reducing the current account deficit and improving the balance of payments; it would strengthen the economy’s resilience to external shocks, diversify risks and increase Romania’s regional and international influence.
At the same time, attracting foreign investment to Romania remains crucial for economic growth, development, and reducing disparities. However, to achieve these objectives, public policies, especially fiscal ones, that create balance and stability, i.e. an attractive investment climate, are decisive.