Croatia’s Net inflow drops

The net inflow of foreign direct investments (FDI) into Croatia decreased significantly in the second quarter of this year compared to the same period in 2022. According to central bank figures, in the second quarter of this year, Croatia received 177 million euros ($185 million) in net FDI, while in the same period in 2022, the country received 660 million euros in net FDI.

The central bank attributed this relatively modest net inflow of direct investments to a negative inflow of equity investments. Several enterprises in the manufacturing and accommodation industries paid out past profits, which reduced the value of their own capital.

Additionally, the central bank mentioned that the accumulation of euro cash flowing in from other parts of the euro area played a significant role in the outflow of funds from the financial account.

Looking at the cumulative net inflow of FDI over the last four quarters, it amounted to 2.717 billion euros, which is equivalent to 3.8% of Croatia’s estimated gross domestic product (GDP). In comparison, in the entire previous year, Croatia received 3.651 billion euros in net FDI, which represented 5.5% of the country’s GDP. This data suggests a decline in FDI inflows over the specified periods.