Croatia is one of Slovenia’s key export markets and the most important investment destination. This bond could only strengthen with Croatia entering into the Schengen agreement and the eurozone.
Next year Croatia is going to join the Schengen agreement and the eurozone. For neighbouring Slovenians, this to a large degree means back to business. For centuries Slovenia and Croatia were part of the Hapsburg empire, and for several decades in the 20th century a part of Yugoslavia. These strong historical connections are reflected in economic ties. Croatia is Slovenia’s fourth most important export market with 3.1 billion euros of exports in 2021. In terms of imports, Croatia is Slovenia’s sixth largest partner with 2.4 billion euros of trade.
Croatia is also the fourth largest foreign direct investor in Slovenia with a 9.7 percent share of FDIs. On the other side, Croatia is the number one destination for Slovenian capital invested abroad with 7.8 billion euros of investments – 35 percent of the total value of Slovenian capital invested outside the country. Croatian companies are strongly present in Slovenia’s food processing industry and retail.
Slovenians invest mostly in real estate, fuel trade, and in the metal processing, electro, and ICT industries. Two most important recent investments: Slovenian fuel trader Petrol took over its Croatian peer Crodux and controls 23 percent of the Croatian fuel market. Petrol also invests solar and wind power plants in Croatia. Slovenian aluminium processing company Impol invested 25 million euros in its Croatian subsidiary Impol – TLM in Dalmatia – the investment is perceived by the Croatian government as strategically important.
Slovenian construction companies built the largest Croatian regional waste center and several wastewater-management plants. The recently opened Pelješac bridge linking Dubrovnik with the rest of the country was constructed by Slovenian company Ponting, a move not entirely without symbolism. The two neighbouring countries are still divided by unresolved maritime border disputes – often exaggerated by media and populist politicians on both sides. As their economic cooperation based on a win-win model clearly proves: building bridges is better than quarreling.
