IMF: Serbia alone received over half of region's FDIs

Serbia alone has attracted "more than half of the total FDIs in the six Western Balkan (WB) economies over the past ten years," says the IMF.

The rest is split between "the other five economies," according to an IMF working paper titled Foreign Direct Investment in New Member States of the EU and Western Balkans, Tanjug has reported.

The WB region shows a similar profile in terms of the dominance of services sector and large countries, the report noted.

"Serbia alone counts for more than half of total FDI stock in the region, with the rest split between the other five countries roughly corresponding to their relative size," the IMF said.

"In services sectors, the dominance of financial and trade sectors is similar to that of the NMS (New (EU) member-states). For manufacturing, which counts for around fifth of the stock, chemical, food and beverage and automotive products are most important," the paper said.

According to the report. "The two regions are strikingly similar in product composition of FDI with the WB region showing a slightly higher share of manufacturing in total FDI stock and a somewhat higher share of low-tech7 products (food and beverages) than the NMS."

"The similarities in product composition in these two regions probably reflect the largely efficiency-seeking nature of investors," the IMF said.