Foreign direct investment in the Balkans: recent trends and prospects

Abstract

A strong upward trend in foreign direct investment inflows is among the most remarkable recent developments in the Balkans—a process that is being led by the private sector in the face of ostensibly insurmountable barriers. External official inputs have contributed little to the trend of improvement, beyond the provision, arguably, of the most basic conditions. Private business does not operate in a political and social vacuum. But it is striking that the upsurge in foreign private sector involvement has been based on only a few minimal conditions—the restoration of peace and basic security, the beginnings of economic recovery and modest improvement in business environments. Medium‐term forecasts suggest that the buoyant FDI trend is likely to be sustained.

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