Friday, October 20, 2006

Foreign investments in Macedonia cut by half in 2005

Foreign direct investments (FDI) in Macedonia in 2005 were almost cut by half compared to 2004, and the country was ranked at the bottom in the region.

Roughly $100 million were invested in Macedonia last year, according to World Investment Report 2006 published by the United Nations Conference on Trade and Development.

In Macedonia, FDI flow slipped down in 2005, compared to 2004, when the country reported $157 million foreign direct investments.

Macedonia ranks at the bottom among the countries in South East Europe. In 2005, FDI flow in SEE region ranged $157 million.

FDI inflows rose substantially in Romania and Bulgaria, the future members of the European Union. Both countries reported $63 billion i.e. $2.2 billion worth of foreign investments in 2005. FDI flows in Croatia ranged $1.69 billion. Serbia and Montenegro - $1.48 billion, Bosnia and Herzegovina - $300 million, Albania - $260 million.

FDO inflows in Southeast European region rose to $13.3 billion.

The report says global FDI inflows rose substantially in 2005. Global FDI inflows marked 29% jump reaching $916 billion. A major contributing factor to this strong growth was the market increase in the inflows to developed countries. Rising global demand for commodities was reflected in the steep increase in natural resource-related FDI, although the services sector continued to be the major recipient of FDI.

EU member-countries remained the main magnet for FDI flows, marking $442 billion inflow, i.e. almost half of global FDI inflows.

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