1 / 18

Spotlight on SEE: an overview of private sector activity and investment

Spotlight on SEE: an overview of private sector activity and investment . Peter Sanfey, Elisabetta Falcetti, Anita Taci and Sladjana Tepic 16 April 2004. SEE: Opportunity and Potential. Growth exceeding CEB, driven by private sector expansion Private sector share of GDP > 60%

aaron
Download Presentation

Spotlight on SEE: an overview of private sector activity and investment

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Spotlight on SEE: an overview of private sector activity and investment Peter Sanfey, Elisabetta Falcetti, Anita Taci and Sladjana Tepic 16 April 2004

  2. SEE: Opportunity and Potential • Growth exceeding CEB, driven by private sector expansion • Private sector share of GDP > 60% • Improving investment climate • Increasing access to finance • FDI at record levels • Expanding intra- and inter-regional trade

  3. Growing economies

  4. Privatisation has advanced… Large scale privatisation Average EBRD Transition Indicator Score

  5. …and the business climate improved Source: BEEPS

  6. Credit to private sector growing % of GDP Source: EBRD, IMF - International Financial Statistics, and central banks of countries in the region.

  7. Capital flows and FDI peaked in 2003 US$ billion Sources: EBRD, IMF, World Economic Outlook, UNCTAD

  8. Trade opportunities expanding • Trade liberalisation advanced: most tariff barriers removed • Regional FTAs: 26 out of 28 signed, but implementation is a key challenge • Access to EU markets improving

  9. SEE: Challenges and Risks • Overall transition lags behind CEB • Doing formal business is difficult – informal activities around 1/3 of GDP • Financial intermediation is limited • Limited “greenfield” investment so far • Non-tariff barriers to trade remain significant

  10. Reforms in SEE lag behind CEB

  11. Taxation, corruption and access to finance remain key constraints Source : BEEPS

  12. Internal funds are main source of funds for SMEs Source : BEEP (2002)

  13. Most FDI linked to privatisation Annual percentage change Source : UNCTAD, EBRD

  14. Remittances play a crucial role Remittances/GDP: Top 10 transition countries, 2001 Source : EBRD & IMF

  15. Customs and trade regulations remain significant obstacles to trade Source : BEEPS (2002)

  16. Policy implications • Encourage remittance flows through official channels • Strengthen banking competition and access to alternative sources of domestic finance • Target meaningful investment climate measures (including fair treatment for foreign investors) • Facilitate cross-border trade • Tackle the informal sector

  17. EBRD Commitments to SEE:>EUR 1 billion / yr – Private share up Annual business volume EUR million

  18. Spotlight on SEE: an overview of private sector activity and investment Peter Sanfey, Elisabetta Falcetti, Anita Taci and Sladjana Tepic 16 April 2004

More Related