Strategic location of the region ► ideally situated for building trade links b/n Western Europe, Middle East and Asia. Infrastructure has significantly improved with major investments planned in mid-term
Most countries are members of EU, OECD and NATO ► major changes in economies and business environment. Some have already adopted the Euro. Legal, regulatory and business conditions have marked solid improvement; regulatory framework synchronized following EU accession.
Stable economies with low level debt levels ► govt. debt to GDP is 50% vs. 95.6% for the Eurozone; gross private debt is 95% (65% corporate/30% household) vs 203% (143% corporate/60% household) for the Eurozone
Emerging Europe boasts well-educated and relatively inexpensive workforce ► labor force with tertiary education on the rise. Wages growing, but still lowest labor costs
Favorable tax regimes ► significantly lower tax rates (e.g. 10% corporate income tax in Bulgaria)
Strong support from EU funds ► €500 bln = 39% of the new EU members’ 2019 GDP is available for the period from 2021 to 2027
Central & Eastern Europe is a diverse region offering appreciable scale:
Country Group Name | Subject Descriptor | Units | Scale | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
World | Gross domestic product, constant prices | Percent change | Units | 3.653 | 2.947 | -2.667 | 6.605 | 3.645 | 3.493 | 3.292 | 2.785 | 2.963 | 3.216 | 3.216 | 3.179 | 3.121 |
Advanced economies | Gross domestic product, constant prices | Percent change | Units | 2.284 | 1.872 | -3.958 | 3.628 | 2.946 | 1.738 | 1.798 | 1.377 | 1.506 | 1.689 | 1.717 | 1.674 | 1.651 |
Euro area | Gross domestic product, constant prices | Percent change | Units | 1.768 | 1.627 | -6.016 | 1.220 | 3.533 | 0.401 | 0.855 | 0.806 | 1.185 | 1.348 | 1.297 | 1.204 | 1.129 |
Major advanced economies (G7) | Gross domestic product, constant prices | Percent change | Units | 2.091 | 1.748 | -4.216 | 5.816 | 2.617 | 1.852 | 2.593 | 1.228 | 1.379 | 2.119 | 1.625 | 1.595 | 1.568 |
Other advanced economies (Advanced economies excluding G7 and euro area) | Gross domestic product, constant prices | Percent change | Units | 2.804 | 2.046 | -1.585 | 5.917 | 2.781 | 1.845 | 2.236 | 1.766 | 3.507 | 2.157 | 2.152 | 2.057 | 2.044 |
European Union | Gross domestic product, constant prices | Percent change | Units | 2.283 | 2.044 | -5.514 | 6.421 | 3.668 | 0.596 | 1.116 | 1.156 | 1.478 | 1.605 | 1.563 | 1.789 | 1.434 |
ASEAN-5 | Gross domestic product, constant prices | Percent change | Units | 4.951 | 4.209 | -4.416 | 4.073 | 5.492 | 4.072 | 4.634 | 3.966 | 3.947 | 4.216 | 4.342 | 1.726 | 4.523 |
Emerging market and developing economies | Gross domestic product, constant prices | Percent change | Units | 4.674 | 3.738 | -1.736 | 7.038 | 4.134 | 4.685 | 4.284 | 4.584 | 3.888 | 4.162 | 4.123 | 4.069 | 3.971 |
Emerging and developing Asia | Gross domestic product, constant prices | Percent change | Units | 6.424 | 1.363 | -0.503 | 7.754 | 4.677 | 6.054 | 4.572 | 4.535 | 4.602 | 4.848 | 4.587 | 4.677 | 4.508 |
Emerging and developing Europe | Gross domestic product, constant prices | Percent change | Units | 2.380 | 2.522 | -1.756 | 7.097 | 0.5 | 3.567 | 3.369 | 2.091 | 2.145 | 2.341 | 4.575 | 2.471 | 2.533 |
Latin America and the Caribbean | Gross domestic product, constant prices | Percent change | Units | 1.134 | 0.16 | -6.877 | 7.429 | 4.208 | 2.399 | 2.371 | 2.014 | 2.387 | 2.708 | 2.712 | 2.706 | 2.551 |
Middle East and Central Asia | Gross domestic product, constant prices | Percent change | Units | 2.670 | 3.141 | -2.199 | 4.356 | 5.452 | 2.245 | 2.419 | 2.956 | 3.539 | 3.975 | 3.695 | 3.668 | 3.738 |
Sub-Saharan Africa | Gross domestic product, constant prices | Percent change | Units | 3.302 | 3.203 | -1.544 | 4.685 | 4.125 | 3.589 | 3.986 | 3.818 | 4.187 | 4.317 | 1.580 | 4.568 | 4.534 |
* Source: International Monetary Fund, World Economic Outlook Database, April 2025
Corporate tax rates
Labor cost per hour ( E ), 2017
Taxes much lower in CEE vs. developed world
States provide tax incentives & additional stimulus to attract foreign investors
While convergence has been driving income growth, wages are still far below European averages
Min wages range b/n €551 and €707 eur in Bulgaria and Hungary vs €2 161 and €2 193 eur for Germany and The Netherlands.
| MSCI EFM Europe+CIS ex RU, € 30.06.2024 | |
| 1Y | 8.42% |
| 3Y, annualized | 21.02% |
| 5Y, annualized | 10.95% |
| 10Y, annualized | 0.54% |
FORWARD P/E
P/B, MRQ
DIV YLD
P/E PER COUNTRY, TTM
Over 20 years we’ve built a solid reputation as a reliable partner – our relationships with clients and partners are based on mutual trust and alignment of interest. We work with various local and international institutions in helping clients tap into the potential of Emerging Europe. We establish deep and enduring relationships with our clients to fully understand their unique investment needs.
Since 2012 we represent one of the top global asset managers, Schroder Investment Management (Schroders) in the markets of Bulgaria and Romania. Starting August 2025 we also represent Goldman Sachs Europe, offering their structured products to Bulgarian clients.
Our UCITS funds are offered to investors in Switzerland and Korea via the representation services of Waystone Fund Services and HDC (Hyundai) Securities, respectively.