The Slovenia Times

Foreign Direct Investment Down 3.5% in 2013


Austrian firms remain by far the biggest foreign investors, accounting for over a third of total FDI stock, followed by Swiss (EUR 1.1bn) and Italian investors (EUR 752m).

The report indicates foreign-owned firms are crucial to the success of the Slovenian economy, as they account for almost a fifth of total equity, 22% of employees, almost a third of total sales and net profit, and two-fifths of foreign trade.

Foreign shareholders posted the worst result to date in 2013, recording a cumulative loss of over EUR 8m as opposed to almost EUR 210m in net profit in 2012, the report shows.

The loss is mainly a result of the woes of the banking sector, which accounts for a significant chunk of FDI stock along with other financial services, while investors in pharma, retail, chemicals and electronic devices were profitable.

All foreign investors took out a combined EUR 466m in dividends from their Slovenian undertakings, down 8% year-on-year, but the figure is set to rise this year as payouts topped EUR 400m in the first nine months.

The report is based on a new methodology, called BPM6, which was introduced in the EU in 2012 and displays FDI in terms of directional investment positions.

The difference compared to the old methodology, which measured FDI stock in the balance of payments account, is significant: over two billion euros for 2012 and 1.8 billion for 2013.


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