Foreign Direct Investments in Croatia Drop Significantly

Total Croatia News

ZAGREB, February 19, 2018 – 610 million euro of foreign direct investment (FDI) was registered in Croatia in the third quarter of 2017, which was 103 million euro or 14.5% less than in the same period of 2016, according to data from the Croatian National Bank (HNB).

In Q3 2017, the largest FDI item was retained profit, accounting for 78.3% of all foreign direct investment in the period, Raiffeisenbank Austria (RBA) analysts said in their comment on the HNB report.

The largest portion of retained profit was in financial activities, accommodation provision and commerce. “However, just as in Q2 and Q1 2017, the level of retained profit in Q3 was lower than in the corresponding periods of 2016,” RBA said.

The decline is a consequence of lower profits of credit institutions that were exposed, throughout 2017, to rising costs of value adjustments for corporate loans, according to the RBA analysis.

The HNB data show that, from January to the end of September 2017, 1.29 billion euro of FDI went into Croatia, down 6% compared to the corresponding period in 2016.

 

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