Foreign direct investment (FDI) in Croatia in the first nine months of 2015 amounted to EUR 666.1 million, significantly less than at the same time in 2014, the central bank said on Monday, adding that if round-tripping was excluded, FDI over nine months in 2015 was nearly halved from the same period the year before.
The balance of payments shows that FDI over nine months in 2014 totalled EUR 2.8 billion, of which nearly EUR 1.5 billion was round-tripping in June of that year.
FDI in the first three quarters of 2015 was EUR 651.9 million lower on the year. FDI net capital inflow in said period was significantly lower year on year because of the conversion of Swiss franc loans into euros, resulting in high negative retained profits in financial intermediation in Q3. In the first three quarters of 2015, negative retained profits amounted to EUR 379.5 million.
The effects of Swiss franc loan conversion on FDI resulted in a negative amount of EUR 604.8 million in banking in the first nine months of 2015. Since many banks in Croatia which offered Swiss franc loans are owned by Austrian banks, Austria recorded a negative amount of EUR 473.6 million.
FDI in tobacco products amounted to EUR 518.3 million. The takeover of the Rovinj Tobacco Factory (TDR) by British American Tobacco was completed in late September 2015 and the transaction amounted to EUR 505 million after the deduction of TDR's liabilities.
In 2015, aside from the tobacco industry, foreign investors invested most in real estate (EUR 122.6m), construction (EUR 76.5m), hotels and restaurants (EUR 73.6m), and wholesale trade (EUR 71.1m).
Aside from Great Britain, which invested EUR 586.4 million in Croatia over nine months in 2015, major investments were made by Luxembourg (EUR 256.9m), the Netherlands (EUR 112.1m) and Slovenia (EUR 72.6m).
In the period from 1993 through September 2015, FDI in Croatia totalled EUR 30.07 billion. The highest amount was invested by the Netherlands (EUR 6.01b), followed by Austria (EUR 5.94b), Germany (EUR 2.56b), Hungary (EUR 2.18b), and Luxembourg (EUR 2.02b). The highest amount was invested in Croatian banks (EUR 6.7b), other business activities (EUR 3.35b), wholesale trade (EUR 2.61b), real estate transactions (EUR 2.36b), and post and telecommunications (EUR 1.83b).