Macedonia's FDI Plummeted Last Year

Amid last year’s global economic downturn Macedonia attracted only a modest €180 million in investments, the National Bank of Macedonia, NBM, announced late Tuesday. The figure in 2008 was €399 million.

However, data from NBM shows that 2007 remains the most successful year, with a record FDI of €506 million.

The government has claimed that the disappointing FDI figures are largely due to the crushing effects of the global economic crisis, which caused many previously announced investments to either be canceled or postponed.

Last year several companies that had planned large scale investments in the country canceled or put their plans on hold, among them Turkish glass manufacturer “Sisecam”, the French car parts manufacturer “Montupet” and the Slovenian home appliances company “Iskra”.

Some local economic experts argue that the country is becoming less attractive for investors due to its stalled  NATO and EU accession bids, which are seen as key factors for the stability of the country.

Back in 2006 the centre right VMRO DPMNE led government came to power promising swift steps to strengthen the struggling domestic economy. The country has since introduced a set of measures aimed at easing the process of doing business in Macedonia and sent economic 'ambassadors' across the world to promote investment in the Balkan country.