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Emerging market focus: Western Balkans
- July 1, 2026: Vol. 19, Number 7

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Emerging market focus: Western Balkans

by Loretta Clodfelter

The Western Balkans are generally acknowledged to comprise the Southeastern European nations of Albania, Bosnia and Herzegovina, Croatia, Kosovo, Montenegro, North Macedonia, and Serbia. Although the six economies collectively account for less than 18 million people, their strategic location between the European Union, Central Europe and the Eastern Mediterranean has made the region increasingly attractive to investors seeking manufacturing, logistics, energy and infrastructure opportunities.

The conflicts in the region following the dissolution of the former state of Yugoslavia in the 1990s left a need for reconstruction and development. The European Union has pursued a policy of enlargement in Southeastern Europe, through the Stabilization and Association Process, launched in 1999, and with a Regional Cooperation Council established in 2008.

Infrastructure investment in the countries of the Western Balkans has been supported by the European Union, which has a policy

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