Strategic Moves - Regional Environmental Center for Central and ...

FIGURE 5: Foreign direct investments in SEE
% of GDP
18
16
14
12
10
8
6
4
2
0
The current account deficit of national governments has tended to increase in
all SEE countries as a consequence of reduced aid flow, the rise in oil and commodity
prices, and greater imports of goods triggered by credit growth. In recent
years the account balance was positive only in Kosovo (as defined under UNSCR
1244). The trade account deficit also remains relatively high due to the orientation
of national economies towards imports. Foreign direct investment saw a significant
boost in the region, driven by large purchase deals, privatisation processes
and growing interest on the part of investors in the financial, construction and
manufacturing sectors (EBRD website).
The region’s mid-term macroeconomic outlook remains favourable and is dependent
on the maintenance of internal and regional stability, the continuation of
structural reforms, reforms in the business and labour sectors, market liberalisation,
infrastructural restructuring, and the privatisation of strategic enterprises (EBRD
website). Reduced state intervention, the stimulation of private sector development,
and the reform of the public administration and judiciary system should also be addressed
in country-specific mid- and long-term development plans and strategies.
C H A P T E R 4
E C O N O M I C D E V E L O P M E N T A N D T H E E U A C C E S S I O N P R O C E S S
2004 2005 2006 2007 2008
Albania Bosnia and
Herzegovina
Croatia FYR
Macedonia
Montenegro Serbia
Source: IMF country reports, national banks, Eurostat, national and federal statistical offices, the World Bank, NCB, SEE ministries of finance
S T R AT E G I C M O V E S 73