While much of the global business community continues to focus its expansion and investment activity on the dynamic growth of the Chinese and Indian economies, another economic success story continues to unfold slightly closer to home. Growth of Central and Eastern European (CEE) economies at rates of 6%-7% per annum may not be quite as remarkable as the double-digit growth rates of the Asian giants, but when considered alongside the further growth potential stemming from accession to the European Union (EU), former Soviet bloc countries are attractive targets for foreign investment.
Foreign investors have recognised this potential and foreign direct investment in the region increased more than threefold in the three years to 2005. In 2005, the total aggregate value of M&A in the region reached $90bn (£45bn), with this figure expected to continue rising as the full effects of EU membership are seen.
