FDI in decline in first four months of 2009
11.06.2009
Foreign direct investments (FDI) continue to decline in Montenegro. According to the Central Bank of Montenegro, in the first four months of this year FDIs totalled EUR 157.3 million, falling by 49 per cent on an annual basis.
Based on forecasts by the Montenegrin finance ministry, this amount equals to 4.4 per cent of the estimated GDP for the entire year. The real estate market attracted 30.8 per cent of all investments (EUR 48.5 million), with FDIs falling by 54 per cent compared to the previous year. Local manufacturers and banks received 46.2 per cent (EUR 72.6 million) of FDIs, with banks reporting a 47.2 per cent decrease. About EUR 35.8 million arrived in Montenegro as intercompany debt, with a 43.4 per cent decline compared to last year.
FDIs fell by a total of EUR 32.9 million (-72.8 per cent year on year). Net FDIs totalled EUR 124.4 million, with a 33.7 per cent year on year decrease. Officials estimate that net FDIs will total EUR 300 million in 2009 if the current trend continues. However, this figure may rise significantly if at least one of the large-scale investments currently in the planning phase is made, such as those from energy company EPCG, tourism companies Valdanos and Velika Plaza and the Simo Milosevic rehabilitation centre.
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