Romania Becomes a Nearshoring Hub in the European Union through the Growth of Foreign Direct Investments
Monday, June 29, 2026, at 19:02 57 reads
Romania recorded in 2025 the second largest growth of foreign direct investment projects in the European Union, after Greece, climbing two places in the European attractiveness index for this type of investment and occupying the 9th position at EU level. This evolution is supported by advances in the digital sector, IT, and industry, consolidating Romania as a nearshoring hub in Europe and explaining the return of flows to 8.1 billion euros.
Romania Records a Record Figure in Foreign Direct Investments in 2025, in a European Context
In 2025, foreign direct investment flows to Romania rose to 8.1 billion euros, and the number of announced projects increased by 16%, reaching 109, while the share of generated jobs grew by 39%, to 5,710. Against this backdrop, our country recorded the second largest growth of FDI in the EU, after Greece, climbing two places in the European attractiveness index, to the 9th position at EU level. The advance is mainly supported by investments in the digital sector and industry, especially in machinery and equipment, while software and IT services have remained a strategic reference point on the map of investor preferences.
On a macro level, Romania's growing attractiveness contrasts with a European trend, as the total number of FDI projects announced in Europe in 2025 fell by 7%, remaining 24% below the 2017 peak, amid high energy costs, geopolitical uncertainties, and pressures on competitiveness in the region. Bogdan Ion (country managing partner EY Romania & Moldova) emphasizes: "Maintaining this favorable context is not guaranteed. Foreign investor confidence in 2026 remains positive, but more cautious: 52% expect Romania's attractiveness to improve in the next three years, down from 58% in the previous year and below the 67% reached in 2024," according to the mentioned study. He adds: "The momentum in 2025 was real, but it can fade if it is not transformed into predictability, delivery of public infrastructure, a faster and better organized administration, accessible energy, more efficient allocation of state aid, and better access to financing."
Nearshoring and Romania's Role on the European Production Map
EY analysis highlights that 2025 was dominated by investments in production, technology, transport and logistics, construction, and energy, accelerating Romania's profile as a solid nearshoring hub in Europe. Peter Latos (partner, EY-Parthenon Romania) states: "Nearshoring is the process by which companies relocate production centers from abroad to a country closer to the producer's home country," and examples of relocation to Central and Eastern Europe illustrate this trend. Additionally, transactions in recent years have been concentrated in four sectors: real estate and construction, consumer products and retail, technology, and energy, reflecting a GDP growth driven by consumption and the transition to services, Latos emphasizes.
Regarding attractiveness for nearshoring, the pace has remained sustained in the production sector, among transport and logistics providers, but also in equipment and machinery, as well as IT services, creating a balanced mix between industrial and digital investments. Guillaume Macczak (partner, GBS & Finance Consulting) emphasizes that Romania's performance in 2025 confirms its positioning as a credible nearshoring hub in Europe, contrary to the declining trends in the region, and stresses that long-term success will depend on transforming European funding into visible results: "Investors are paying increasing attention to execution factors such as infrastructure delivery, regulatory predictability, and energy competitiveness." He adds that Romania's attractiveness for nearshoring is highest in the production sectors, transport and logistics providers, supported by growth in equipment and machinery, as well as IT services.
How Romania Positions Itself Compared to Its Neighbors in the Region
Compared to Hungary and Poland, the study reveals three distinct trajectories of FDI flows between 2023 and 2025. Poland remained the main FDI recipient, but Romania recorded the clearest recovery in 2025, from 5.6 billion to 8.1 billion euros. Hungary continued to grow, but at a more moderate pace, from 3.71 billion euros in 2024 to 3.49 billion euros in 2025. Alex Milcev (partner, EY Romania) emphasizes that in the competition for FDI, there is not yet a unique fiscal positioning of Romania relative to surrounding regions: "From this perspective, Romania has some important advantages, such as facilities granted for reinvested profit and research-development activities. However, we must recognize that other countries in the region also offer similar tax schemes." He adds that the mere existence of facilities is not enough if access or their application becomes bureaucratic or insufficiently fast.
At the territorial level, Bucharest-Ilfov continues to lead in the volume of FDI projects in 2025, with 45 initiatives, but job creation is more modest, only 754, equivalent to about 17 jobs per project. Regional exponents show different employment intensity: South-West Oltenia (737 jobs from 4 projects), North-West (1,375 jobs from 14 projects), Center (1,108 jobs from 13 projects), and West (909 jobs from 11 projects). In this light, Bucharest dominates volume, while regional centers stand out for job creation intensity, the study writes.
Prospects for 2026: What Mergers and Acquisitions Could Bring in the Local Scenario
EY analysis anticipates further directions for 2026, in the context of a more moderate GDP growth, where consumption dynamics can play a major role in investor decisions. Peter Latos summarizes the trend by emphasizing investors' attention to execution factors and the need for a favorable framework for mergers and acquisitions, in order to consolidate portfolios and operational expansion, according to the EY Attractiveness Survey Romania 2026.
