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Foreign direct investments in Croatia this year total 1.125 billion euros

ZAGREB, Oct 16 (Hina) - In the first six months of 2006 Croatia attracted 1.125 billion euros of foreign direct investments (FDI), an advisor in the statistics department of the Croatian National Bank (HNB), Alen Skudar, said on Monday at the presentation of the "World Investment Report 2006" compiled by the UNCTAD.
ZAGREB, Oct 16 (Hina) - In the first six months of 2006 Croatia attracted 1.125 billion euros of foreign direct investments (FDI), an advisor in the statistics department of the Croatian National Bank (HNB), Alen Skudar, said on Monday at the presentation of the "World Investment Report 2006" compiled by the UNCTAD.

Figures for the first six months of this year show that most of the 1.125 billion euros of FDI refer to ownership investments which last year amounted to 765 billion euros, while in the first half of this year ownership investments totalled 313 billion euros.

Skudar, however, said that undistributed profits in the overall direct foreign investment account for a significant share, adding that undistributed profits had been increasing at a constant rate since 1997.

HNB figures show domination of investments from European Union countries. In the period between 1993 and 2004, the investments from 15 EU members accounted for 71 percent of all foreign direct investment, while in the past year and a half they reached 80 percent. Austria leads with a 21 percent share in overall investments, Germany follows with 17 percent, France with 9.5 percent, Italy with 7.8 percent and Hungary with 7.2 percent.

Direct investments by Croatian companies abroad in this year's first half amounted to 22.9 million dollars, as against last year when they amounted to 184.4 million euros. Of this amount, 31 percent was directed to European developing countries, Serbia and Montenegro (35%) and Bosnia-Herzegovina (19%).

According to the report, presented by UNCTAD special advisor Branko Vukmir, a total of 40 billion US dollars have been invested in Southeast Europe last year, of which 6.3 billion were invested in Romania, 2.2 billion in Bulgaria, 1.69 billion in Croatia and 1.48 billion in Serbia and Montenegro.

Overall foreign direct investments in the world increased by 29 percent to 916 billion US dollars last year as against 2004.

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