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RSS Feed Business21. 08. 10. - 10:00
Negative trend of foreign investment continues
Croatian Times
The negative trend of foreign investment - which was half as much in 2009 as in the previous year – is continuing, data from Croatian National Bank show.
Foreign investment in the first quarter of the year totalled 400 million Euros, whereas it amounted to more than two billion in 2009.
Two possible reasons for the apparent lack of foreign confidence are that Croatia is either not competitive enough or that investors want in invest in other states in the region that are showing signs of exiting the crisis, the portal Index has reported.
Most foreign investment in Croatia during the past decade was in financial intermediation, retail trade and energy, with industry coming in fourth. Croatia’s main economic branch, tourism, is in 10th place.
Experts say that foreign investment will increase upon Croatia’s entrance into the European Union, when the perception of investment risk will change for the better.
Barriers to investment continue to be lack of industrial policy, excessive labour costs and high administrative barriers. Compared to its neighbours, Croatia offers fewer tax and other benefits, Index has claimed.
Tag cloud fourth investment retail intermediation financial excessive benefits Experts lack Croatian trend administrative 10th Index Union energy Barriers industry tourism labour
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