Foreign direct investment (FDI) in Macedonia jumped by over 35% y/y to €223.7mn in the first eight months of 2016, preliminary central bank data indicated on October 31. The figure is equal to 2.4% of the forecast 2016 GDP.
The increase comes as the government is stepping up efforts to attract more foreign investors by offering favourable conditions in the country’s free industrial zones, of which the biggest is the Bunardzik zone near Skopje. A recent government survey showed that over 50% of foreign investors in Macedonia expanded their investments and more than 80% planned to open new production lines in the Balkan country.
In August alone, FDI in Macedonia totaled €54.5mn, compared to only €6.2mn a year ago, central bank data indicated.
According to the latest report from the European Commission, Macedonian economic growth is expected to strengthen gradually thanks to rising private investment and consumption, whereas investment should be supported by some large FDI-financed projects.
FDI in Macedonia increased by a revised 5.6% y/y to €216.7mn in 2015.