Domestic investors invested a total of more than 46.4 billion kuna in fixed assets last year

During the past year, domestic investors invested a total of more than 46.4 billion kuna in fixed assets, which is 0.28 percent or approximately 130 million kuna less investment than in the previous year, according to data from the Croatian Bureau of Statistics (DZS).

This refers to total gross investments in new and used fixed assets made in 2015 by entrepreneurs, financial and insurance institutions, budget users, non-profit organizations, etc., based on data from annual and quarterly financial reports that DZS obtained from the Financial Agency (Fina).

According to this data, total investments in fixed assets, both tangible and intangible, of domestic and foreign origin, both new and used, slightly decreased last year. However, the Croatian Chamber of Economy (HGK) emphasizes that this is a nominal decrease, so if the present deflation of 0.5 percent is taken into account, it could be concluded that there was a slight real growth compared to the previous year.

Growth is also indicated by data on investments only in new fixed assets – 41.82 billion kuna was invested in new assets last year, which is 1.7 percent or 703 million kuna more than in 2014, which, according to HGK, means that the overall decline occurred due to lower investments in used fixed assets.

When viewed by investor activity, the largest share of total investments during 2015, at 13.6 percent, belongs to the manufacturing industry, in which more than 6.3 billion kuna was invested in fixed assets last year. In public administration and defense, as well as mandatory social security, total investments amounted to 5.6 billion kuna or 12.18 percent of the total amount, while in transport and storage, 5.04 billion kuna was realized in investments (10.8 percent).

Looking at the value of investments last year, the highest annual increase in investments was recorded in the supply and drainage and waste management sector, with an increase of 690 million kuna or 44 percent, while in the manufacturing industry, investments grew by 613 million kuna or 11 percent, and in the IT sector by 562 million kuna or 24 percent. At the same time, the largest decline, of one billion kuna or 25 percent, was recorded in trade and the financial sector, with a decrease of 831 million kuna or 21 percent, and in public administration and defense, where the value of investments decreased by 806 million kuna or 13 percent.

At the same time, DZS data shows that the majority of investments made in 2015 – almost 24 billion kuna or 51.55 percent, were financed by investors’ own funds or joint investments. Just under 27 percent of total investments, or almost 12.5 billion kuna, were financed by financial loans or through financial leasing. Budget funds or funds obtained under special regulations realized 6.16 billion kuna in investments last year (13.2 percent), while funds from the European Union amounted to only 2.2 billion kuna or 4.8 percent.

Own funds were mostly invested in IT and mining; EU funds in construction

Own funds were the most used source of financing in the IT sector, mining, and extraction, where their share in total investments was 94 and 93 percent. In the manufacturing industry, which had the largest investments, investors’ own funds were the source of investment for 72 percent of the total investment amount.

The least, about 20 percent, of own funds were invested by budget users – in public administration and defense, as well as in education. In these sectors, the highest share of budget funds and funds obtained under special regulations ranges from 43.5 percent in education to almost 56 percent in public administration and defense and mandatory social security.

The highest amount of investment financed by EU funds was achieved in construction and is above one billion kuna. This accounts for more than 45 percent of the total amount of investments realized with the help of EU money last year in Croatia, as well as 35.5 percent of all last year’s investments made by investors in construction.

In terms of total investments financed by EU funds, public administration and defense, as well as mandatory social security, ranked second, but with half the amount – 467.4 million kuna and half the share, at 21 percent of all investments supported by EU money.

Most investments were made in buildings

DZS data shows that almost half of last year’s investments (47 percent), or 21.7 billion kuna, were invested in construction facilities, spaces, and buildings. In facilities and equipment with assembly, 13.7 billion kuna was invested in 2015, 5.6 billion kuna in transport assets, and 1.73 billion kuna in intellectual property.

The most was invested in buildings, 3.7 billion kuna, in public administration and defense, mandatory social security, and in transport and storage – 2.88 billion kuna. Investors from the manufacturing industry invested the most in facilities, more than 3.66 billion kuna.

The largest investments in intellectual property last year were made in the IT sector. They amounted to 604.3 million kuna, accounting for 20.5 percent of total investments in that sector, but also 35 percent of the total amount invested in intellectual property in Croatia during 2015.

Territorially, last year, the most, 25 billion kuna or 54 percent of total investments, were invested by investors from the City of Zagreb, while the least, less than 177 million kuna or only 0.4 percent of total investments, were realized by investors from the Ličko-senjska County.