Bosnia’s FDI halves y/y to EUR 23mn in January 2014 - Directorate for Economic Planning

By bne IntelliNews March 14, 2014

Bosnia attracted BAM 44.2mn (EUR 22.6mn) in foreign direct investments in January 2014, registering is a 55.1% drop on the year, the Directorate for Economic Planning (DEP) reported, citing data from the foreign trade ministry.

The largest investment inflows in January came from Sarajevo-based UniCredit Leasing in the amount of BAM 19.6mn, the DEP underscored.

FDI to Bosnia fell 34% to only BAM 283.9mn in 2013, the DEP has said earlier. The largest investments last year were carried out by UK-based energy firm EFT the construction of a 300-MW Stanari thermal power plant (and the extension of an adjacent coal mine) and by Russian-owned Comsar Energy for the construction of two new units of 300MW each in the existing Ugljevik thermal power plant. EFT invested BAM 73.22mn last year, while Comsar spent BAM 62.6mn.

Rising social unrest since early February due to political inertia and high unemployment, as well as political uncertainties ahead of the October 2014 parliamentary elections, will weigh on investors confidence in the coming period.  Nonetheless, stronger external demand will support a 2.0% GDP expansion in 2014, up from an estimated 0.8% growth in 2013, according to the latest IMF forecast.

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