Western Europe is the key trading partner of the Western Balkan countries, but local companies play a minor role in exports compared to foreign investors. Strengthening the local companies with a potential and pushing foreign investors to develop from extended workbenches to integrated providers will enhance the local value added and push economic growth. The current strain on the supply chain and the need for nearshoring/ friend-shoring create a window of opportunities. This brief focuses on the key elements to grasp this opportunity.
Key facts: 1. There is a substantial economic potential following the need for nearshoring/friendshoring, which can increase exports and foreign direct investments.
2.FDI can have a significant impact on the local economy if pre-products can be manufactured locally. This is not possible for all products, and it should be taken into account when choosing the investors.
3.The existing tools and policies should be re-evaluated and more streamlined. Most of the required policies will benefit existing companies as well.
Read the policy brief on the following link:
Integrating the Western Balkan companies into European Supply Chains