Inflow of foreign direct investments

During the first four months of 2023, a decline in FDI inflows was recorded. The total FDI inflow amounted to EUR 300.1 million, which is 3.9% less compared to the same period in 2022. Due to the growth of FDI outflows, net FDI in the observed period was 19% less. Slightly more than 90% of total FDI is based on inflow related to nonresident investment in Montenegro. The largest part (close to half of the total FDI inflow) relates to real estate sales, while a third of the inflow relates to intercompany debt. The largest inflow of FDI is from Turkey (slightly more than a quarter of the total inflow) and Serbia (15.2%). Other countries from which there is the largest inflow of FDI are Germany, Russia and Malta. However, the structure of inflows by country has changed over recent years.
Internal factors, such as the political instability that characterized the previous year and the first part of this year may be one of the factors that influenced FDI trends. Additionally, external factors and the situation on the international market have potentially affected the situation in Montenegro. It is certainly of great importance to preserve and increase the confidence of foreign investors so that the impact of FDI inflows on economic growth would be greater.

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