The latest data from the Central Bank of Montenegro (CBCG) reveals a complex landscape for foreign direct investments (FDI) in the country during the first ten months of 2023. While total foreign direct investment inflows reached €789.61 million, an outflow of €373.87 million was recorded, indicating a net inflow of €415.74 million. This figure represents a modest increase of 0.77 percent compared to the same period in 2022.
The overall inflow of foreign direct investments showed a significant rise, increasing by 7.01 percent compared to the previous year. This positive trend is noted in the CBCG Bulletin, which highlights the contrasting dynamics of inward and outward investments.
A closer examination of the data reveals that investments by residents in foreign markets accounted for €95.12 million of the outflow. In contrast, withdrawals by non-residents who had previously invested in Montenegro totaled €278.75 million. This disparity reflects ongoing shifts in investment strategies both domestically and internationally.
The inflow of foreign direct investments primarily came in the form of equity investments, amounting to €503.01 million, which constitutes 63.7 percent of the total inflow. Notably, a substantial portion of this investment, approximately €405.91 million, was directed towards the real estate sector, while investments in businesses and banks reached €97.1 million.
In terms of intercompany debt, the inflow was recorded at €254.18 million, marking an increase of 5.01 percent compared to the same timeframe in 2022. The remaining 4.11 percent of investments were classified as other investments, which include withdrawals of foreign investments.
The data from the CBCG underscores a nuanced picture of Montenegro’s economic landscape, showcasing both the opportunities and challenges faced by investors in 2023. As the country navigates these trends, the focus will remain on fostering a conducive environment for foreign investments while managing outflows effectively.
