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Americans invested more in Croatia last year than in the previous 28 years combined

According to preliminary data from the Croatian National Bank (HNB), 2.85 billion euros in direct foreign investments arrived in Croatia during the first three quarters of last year. If foreign investments continued at the same pace in the last quarter of last year, it can be assumed that the final data for 2022 will be approximately at the level of the record 3.9 billion euros achieved in 2021.

The largest portion, 2.4 billion euros, of direct foreign investments realized in the first nine months of last year relates to so-called circular direct investments, which are investments where the direct investor directs their domestic financial resources abroad and then reinvests them back into the domestic economy. In other words, the majority of last year’s foreign investments were made by companies already operating in Croatia, using money earned in Croatia.

Foreign investors primarily invested in wholesale trade (excluding trade in motor vehicles and motorcycles), that is, in distribution and logistics. In this sector, 712 million euros were invested in the first three quarters, which is just a continuation of the trend from the previous year when 791 million euros were invested in wholesale trade from abroad. Following this are financial services, mainly banks, in which their foreign owners invested 529 million euros. A significant increase in foreign investments is recorded in the accommodation sector, which received 241 million euros, almost double the amount invested in the entire year of 2021.

Looking at the countries from which investments came to Croatia, Austria leads, which is quite logical as Austrian companies have acquired the most Croatian companies over the past thirty years. Austrians invested 364 million euros in Croatia in the first nine months of last year. However, the largest jump among foreign investors in Croatia last year came from the USA, from which 337 million euros arrived, significantly more than the total amount invested from the USA to Croatia from 1993 to the end of 2021 (243 million euros). In third place are investors from Italy, who invested 332 million euros in Croatia.

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