FT have included the country amongst potential “Frontier markets”, an economic term used to describe a subset of emerging markets. Croatia, along with Vietnam, Nigeria, Pakistan, Romania and Serbia were listed as markets that investors have long forgotten about as places to invest and make returns in, but which analysts says have huge potential.
“Some of these markers have never been cheaper,” said Slim Feriani, a manager with the Advance Frontier Markets fund.
“Some of these indices since the beginning of the year have increased between 15 and 20%, and dividend yields are around a solid four to five percent. Analysts suggest that since the benchmark interest rate in the world is at extremely low levels, the dividend yields become the primary focus of investors and therefore it is “worth investing in so-called. frontier markets,” FT writes.