---
title: "Fact of the Week: FDI to the Western Balkans Reached 6.4 Percent of GDP Between 2020 and 2023, Quadruple the EU Average"
summary: |-
  The Western Balkan have excelled in attracting foreign direct investment, with average inflows as a share of gross domestic product equaling 6.4 percent between 2020 and 2023. In contrast, the average rate for the EU was 1.5 percent and about 0.9 percent in the United States.
date: "2026-05-18"
issues: ["National Competitiveness"]
authors: ["Meghan Ostertag"]
content_type: "Blogs"
canonical_url: "https://itif.org/publications/2026/05/18/fdi-western-balkans-reached-6-4-percent-of-gdp-between-2020-and-2023/"
---

# Fact of the Week: FDI to the Western Balkans Reached 6.4 Percent of GDP Between 2020 and 2023, Quadruple the EU Average

**Source: **OECD, [“Economic Convergence Scoreboard for the Western Balkans 2025,”](https://www.oecd.org/en/publications/economic-convergence-scoreboard-for-the-western-balkans-2025_bc0babf3-en/full-report/business-environment-cluster_5d7aef9e.html#Wor244_19d67fd0f5) (Paris, France: OECD, June 10, 2025).

**Commentary: **Foreign direct investment (FDI) is a critical input to developing an innovative economy, driving sustained economic growth, job creation, and cross-border economic partnerships. As such, attracting FDI is essential for developing economies looking to grow and eventually escape the middle-income trap. The Western Balkans, including Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia, have excelled in attracting FDI, with average inflows as a share of gross domestic product (GDP) equaling 6.4 percent between 2020 and 2023. In contrast, the average rate for the EU was 1.5 percent and about 0.9 percent in the United States. Of the countries in the Western Balkans, Montenegro leads with FDI inflows averaging close to 11 percent of GDP. In contrast, Bosnia and Herzegovina trails the region at about 3.8 percent, still double the EU average. According to the OECD’s FDI Regulatory Restrictiveness Index, Western Balkan nations are among the most open to FDI globally.

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*Source: Information Technology & Innovation Foundation (ITIF)*
*URL: https://itif.org/publications/2026/05/18/fdi-western-balkans-reached-6-4-percent-of-gdp-between-2020-and-2023/*