Optimism for investments in South Eastern Europe

A recent survey by Citigroup and the World Monetary Fund, has revealed the bright prospects for investment in the SE Europe and the need for European corporations to invest there.

Among the advantages of the Balkans, one can state the low burden of corporate tax, the condiderable increase of GDP and consuption and the still low wages. In 2006 alone companies from Europe invested 25 billion in the Balkans (Including Turkey, Ukraine) and Citigroup made a list of 72 European companies to watch in 2007, because of their bright prospects in securing gains in the Balkan area.

Amongst the 72 ones, there are 12 Greek companies that have at least 10% of their profits from the SE European economic area.

Eamples:

Coca-Cola 3E, 40%

Cosmote: 25%

Intralot: 75%

National Bank: 30%

Titan Cement: 20%

Piraeus Bank: 15%

Eurobank: 20%

Mechanic Construction: 22%

Since the early 90’s Greek corporations have invested 14 billion Euros in the Balkans and it is estimated that by the next decade this amount will have at least doubled.

On overall there are strong indications that the real-estate, tourism, and niche sectors in industry and agriculture will attract the interest of intenational investors from 2007 onwards and assist in the upsurge of production and economic revival of the South Eastern European states.

NOTE: The reports from the international organizations also mention the importance of political developments in the region and most importantly the attention that prospective and existing investors should pay in order to secure their capital. In short due to the ongoing problems in the Balkans, corporations should have the necessary mechanisms to detect, collect and analyze any relevant political and societal data, so as to be able to confront any unwanted situations.

Source: Citigroup, IMF
 
 

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