The total volume of direct foreign investment in Slovenia at the end of 2017 amounted to 13.7 billion euros, which is 704 million euros (5.4%) more than in 2016. This information is provided by the Bank of Slovenia in its Direct Investment report published on Friday, 19 October 2018.
The largest share of foreign investment was recorded in the manufacturing industry (it features more than a quarter of all companies with foreign capital), in the finance and insurance sector, as well as in the real estate operations (total of 314.4 million euros).
The inflow of private capital in the country amounted to 502.3 million euros. Foreign owners of Slovenian companies reinvested 340.2 million euros of profit. More than half of these operations accounted for companies in Austrian ownership. The total amount of private capital within direct foreign investment in 2017 amounted to 12.3 billion euros (90.1% of the total value of direct foreign investment). The remaining part (9.9%) was the net liabilities to external investors.
In general, 84.3% of all direct foreign investment in Slovenia accounted for the EU countries. The key investors were Austria (25.6% of all investment – just over 3.5 billion euros), Luxembourg (11.4% – just under 1.6 billion euros), Switzerland (10.4% – just over 1.4 billion euros), Germany, Italy, the Netherlands (1.1 billion euros each), and Croatia (923 million euros).
It is worth noting that the volume of Austrian investment in 2017, as compared to 2016, increased by 306.9 million euros. For comparison, the volume of investment from the Grand Duchy of Luxembourg for the same period increased by 117.9 million euros, and the volume of Swiss investment grew by 44.6 million euros.
At the end of 2017, companies with foreign owners accounted for 1.5% of all Slovenian companies, excluding financial intermediaries. The return on their capital was 8.1%, and the average return on capital of all companies was 8%. Companies with foreign owners also paid a 10.1% higher salary per employee than the average salary per employee in Slovenia. Similarly, companies with foreign owners at the end of 2017 achieved a slightly higher net profit and significantly higher added value per employee (48 thousand euros against 40 thousand euros), as reported by the Bank of Slovenia.
On the other hand, the volume of direct Slovenia’s investment in foreign markets at the end of 2017 amounted to 5.9 billion euros, which is 2.9% more than at the end of 2016. Among the five main markets are the four former Yugoslav republics – Serbia, Croatia, Bosnia and Herzegovina, and Montenegro (60.8% of the total investment volume) – and Russia. The major part of foreign investment (about a third) was made by companies operating in the manufacturing industry.