There is tremendous short term growth potential in Western Balkans capital markets, asregional stock exchange indices are still very depressed. They have not improved much since decrease in 2008 and are still lagging substantially behind the world indices, some of them being at only 15% of 2007’s highs. Regional stock markets are mainly still very inefficient and there are plenty of investment opportunities available.
In the mid to long term perspective these countries have the largest growth potential inEurope. With upcoming EU and NATO accessions there will be a lot of EU and other foreign investment capital inflows into the region. Besides numerous investments intoinfrastructure and economy development, regulation will improve due to EU integration process and thus legal safety and framework for additional investments will also improve. This will facilitate better operational results of the companies and thus higher stock valuations.
