Foreign direct investment in Slovenia amounted to EUR 16 billion at the end of 2019, a 4.9% increase compared to 2018. Meanwhile, Slovenia’s outbound FDI rose by 8.7%, to EUR 6.6 billion, show data released by Banka Slovenije on Monday.
Contributing the most to the inbound FDI increase in Slovenia last year were ownership capital and reinvested profit, while net debt to foreign investors decreased, the central bank said.
The largest share, 70%, of ownership capital inflow was in the form of takeovers and mergers, followed by capital increases (16%) and greenfield investment (10%). Standing out among transactions in 2019 were larger takeovers in the manufacturing, financial and insurance sectors.
Austria was the biggest foreign investor in Slovenia last year, accounting for 24.7%. It mostly invested in manufacturing and into motor vehicles trade, maintenance and repairs.
Slovenia’s northern neighbour was followed by Luxembourg (13%), mostly through investment in finance and insurance, Switzerland (11%) with investment in manufacturing, Germany (8.5%) with investment in manufacturing and motor vehicles trade, maintenance and repairs, and Italy (7.9%), mostly with investment in finance and insurance.
Foreign investors recorded in 2019 the highest profits to date. Totalling at EUR 1.4 billion, they were the basis for record-high EUR 0.9 billion in dividend payouts.
Meanwhile, Slovenian FDI was up 8.7% in 2019, mostly on account of ownership capital investment and reinvested profit (EUR 0.3 billion).
Ownership capital accounted for 78.2% of all Slovenian outbound FDI – the share in companies was 71.5% and in real estate 28.5%. The share of debt instruments in the whole of FDI abroad at the end of 2019 was 21.8% or EUR 1.4 billion, which is 7% more than in 2018.
The largest share of Slovenia’s outbound FDI went to Croatia (34.5%), where real estate investments by households and into motor vehicles trade, maintenance and repairs stood out.
Following on this list are Serbia (14%), where investment in manufacturing stood out, Bosnia-Herzegovina (8.1%) where finance and insurance were the main investment sectors, Russia (6.8%) with manufacturing, and North Macedonia (6.3%) with finance and insurance.
Companies abroad with Slovenian ownership saw record profits as well, totalling at EUR 0.3 billion, an increase of over 75%. Dividend payments rose by 4.2%./ibna