"Foreign direct investments (FDI) in Croatia last year totaled €3.8 billion, which is less than 1 percent of the country's GDP, below the average in developed nations where they are 2-3 percent," state agency Hina said on Tuesday, citing speakers at a conference organized by the American Chamber of Commerce (AmCham).

Branko Zibret from the Kearney consulting company said that although investments are picking up globally after the Covid period, which can also be seen in Croatia, the level of foreign direct investments is still markedly lower in Croatia compared to developed countries.

“We are seeing an increase in investments in Croatia too,” Zibret said, adding that, “the level of foreign investments coming into Croatia last year was not satisfactory, as they amounted to less than 1 percent of GDP,” while developed countries are at 2-3 percent.

Hina did not offer any explanation as to why the level of investment is so low.

Also attending the conference was a senior official of the Economy Ministry, Natasa Mikus-Zigman, who said that the data for last year and the first quarter of this year show an increase in foreign direct investments. Last year they amounted to €3.8 billion, and in the first quarter of this year, they amounted to almost €1.0 billion.

“Investments in the green transition, renewable energy sources, and digitisation are strategically important,” she said.

“AmCham is continuously emphasizing the importance of private sector investments and foreign direct investments,” AmCham Executive Director, Andrea Doko-Jelusic, said. She added that these investments contribute to new jobs, technology exchange and new knowledge.

Investments also affect the productivity of the Croatian economy. “As a good example of foreign investment in Croatia, she singled out the investment of IBM a few years ago,” Hina said, without clarifying.