Montenegro’s net FDI more than doubles y/y to EUR 17mn in January 2014

By bne IntelliNews April 1, 2014

Net FDI inflow to Montenegro more than doubled in annual terms in January 2014 to EUR 17mn from EUR 6.6mn a year ago, the central bank (CBCG) said in its monthly bulletin. The reading equalled to 0.5% of the full-year GDP forecast according to IntelliNews calculations.

Net FDI inflow to Montenegro shrank 29.6% y/y to EUR 323.9mn in 2013 following a 16.6% rise the year before, due to falling equity investments which offset higher inter-company lending. The January’s figures might signal some recovery of FDI this year but it is too early to build on the reading.

Montenegro’s FDI inflow totalled EUR 31mn in January, the central bank said without giving an annual comparison. Investments in equity stood at EUR 15.3mn in the first month of 2014, accounting for 49.2% of total inflow. Out of the total, investments in real estate amounted to EUR 10.5mn, while the remainder (EUR 4.7mn) was invested in banks and companies. The FDI inflow in the form of intercompany debt equalled to EUR 15.2mn. Its share in the total FDI inflow was 49.2%. Inflow from the withdrawal of monetary assets invested abroad amounted to EUR 497,000, the CBCG said.

FDI outflows jumped 43.6% y/y to EUR 14.0mn in January. Out of the total, withdrawal of non-residents investments stood at EUR 13.8mn. The remainder was generated by investments of Montenegrin residents abroad (EUR 218,000).

Net FDI in Montenegro remains below its level in 2008 when it stood at around 20% of GDP. Nonetheless, the FDI to GDP ratio in Montenegro is substantially higher than in some other countries in the region at nearly 10% of the full-year GDP forecast in 2013. Net FDI in neighboring Serbia accounted for just 2.3% of GDP last year, in Bulgaria it stood at 3.0%, and in Romania and Bosnia was 1.9%.

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