This report was initially planned to be launched in early 2020, but the outbreak of the epidemiological crisis delayed its publication. Out of the desire to incorporate an updated perspective on foreign direct investment (FDI) in the post-crisis period and although it is too early to draw firm conclusions from the preliminary data released so far, some short and medium-term trends can still be highlighted:

Globally, FDI flows will be significantly impacted by the pandemic. For the period 2020-2021, the United Nations Conference on Trade and Development (UNCTAD) estimates a reduction in FDI flows of up to 40%1 , and the forecasts of the Organisation for Economic Co-operation and Development (OECD) indicate a decrease in FDI of up to 30% in 2020 compared to 20192 . Two thirds of investors surveyed by EY expect a reduction in the investments planned for 2020 in Europe, according to the EY Europe Attractiveness Survey 20203 .

In Romania, FDI flows had a negative net value of –338 million euros in the first five months of 2020, compared to a positive net value of +2.059 billion euros in the same period of 2019. Even though this trend is expected to reverse in the coming months, the initial signal provided by the direction of FDI flows in the first semester of 2020 is a reflection of the relatively high risk that foreign investors see in the Romanian economy and their lack of confidence in the short-term prospects of the business environment.