Investment in Romania’s economy speeds up on booming residential construction

Net investments in Romania’s economy rose by 5.7 percent in the first quarter of this year compared with Q1 2018, to RON 17.3 billion (EUR 3.6 billion) mainly due to a boom in residential constructions, according to the National Institute of Statistics (INS).

Investments in new construction works rose by 20.6 percent year-on-year in Q1, while investment in equipment (means of transportation included) declined by 9.8 percent and other expenditure grew by 6.8 percent.

By economic activities, construction (31.9 percent of total investment), industry (26.9 percent) and the retail and services sector (23.1 percent) attracted the biggest investments.

A separate report of INS showed on Friday that during the first quarter of this year, 12,714 new dwellings were completed in Romania, up 23.8 percent against Q1 2018.

Net investments are the expenditure for the creation of new assets, for the development, modernization and reconstruction of existing ones, as well as for the value of the services on the property transfer of existing fixed assets and lands.