Many Croatian politicians have claimed that Croatia’s entry to NATO is going to boost foreign investment interest and generally contribute to a positive picture about Croatia in the economic world.
Croatia and Albania are two nations that entered into the alliance during the last meeting in Strasbourg, which could eventually pave the way for European Union membership.
Will this also bring a bright future for the economy and the real estate market in Croatia? Can being a member of NATO be beneficial for a country’s economy? Yes it can, but in the end it all depends on many different factors.
NATO membership can be fundamental in inspiring confidence for foreign investors regarding the country’s institutions and political leadership, which is important for economic development. This has been clearly displayed in the case of Romania. Security is also a big issue, and this does not only mean military security guaranteed by the alliance. Big investors like to invest in countries which have satisfied some basic democratic and economic standards, and instead of having to check this themselves, they simply take NATO membership into account. It is therefore likely there could be some increases in foreign investments after the crisis is gone. And there is also tourism, Croatia’s biggest branch of economy. Tourists love to see that the country they visit has sort of an image. NATO and EU membership contribute to this to.
It is safe to say that NATO membership can’t hurt a country or it’s economy, but it also does not guarantee any kind of prosperity or economic benefit, unless if you’re in the arms business. What it does bring is stability, guaranteed stability to be precise, and anyone who has ever dealt with property knows that stability is beneficial for the real estate market in any country. This also applies for Croatia too and it has already made some analysts predict that the Croatian real estate market will recover as soon as this summer.