AmCham warns: Foreign direct investment in Croatia below one percent of GDP

Foreign direct investment in the Croatian economy last year amounted to 3.8 billion euros and is less than one percent of GDP, while in more developed countries it ranges from two to three percent of GDP, it was stated on Tuesday at the conference of the American Chamber of Commerce in Croatia (AmCham) on foreign direct investments.

At the conference titled ‘FDI as an Opportunity for Economic Recovery’, Branko Žibret from the consulting firm Kearney said that after the COVID period, investments are globally improving, which is also visible in Croatia, but the level of foreign direct investment is lower compared to more developed countries.

– In Croatia, we also see an increase in investments after the COVID period – said Žibret, adding, however, that the level of foreign investments entering Croatia in the last year cannot satisfy as it is below one percent of GDP, while more developed countries are at a level of two to three percent.

It is good, according to him, that Croatia is starting with larger investments in information technology and communications.

For foreign investors, he emphasized, it is important, among other things, to have regulatory arrangements in the country where they invest, as well as state support.

State Secretary of the Ministry of Economy and Sustainable Development Nataša Mikuš Žigman said that data for last year and the first quarter of this year show growth in foreign direct investments. Last year they amounted to 3.8 billion, and in the first quarter of this year nearly one billion euros.

– Primarily, these are still investments in the financial segment, but a positive trend is visible which we expect to continue – said Mikuš Žigman.

According to her, investments in the green transition – renewable energy sources and digitalization are strategically important.

The Executive Director of AmCham Andrea Doko Jelušić emphasized that AmCham continuously points out the importance of private sector investments and foreign direct investments. She noted that such investments contribute to new jobs, technology exchange, and new knowledge.

Investments, of course, also affect the productivity of the Croatian economy. As a good example of foreign investment in Croatia, she highlighted IBM’s investment from a few years ago.

The Head of Corporate Relations at Pfizer for the Adriatic region Urša Lakne emphasized that Pfizer was very proud that Croatia was chosen for the company’s investment of 100 million euros in the plant in Savski Marof. She also stated that there is good technological knowledge in the pharmaceutical industry in Croatia.