Publication: Western Balkans Regular Economic Report No. 26, Fall 2024: Retaining the Growth Momentum
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2024-10-21
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2024-10-21
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The economies of the Western Balkans (WB6) continue to navigate a complex operating environment, and despite experiencing a moderate acceleration in growth, uncertainty remains high. This year, the region is expected to rely more on domestic than foreign demand. Economic growth in 2024 has been supported by expansionary fiscal policies, rising credit availability, and easing of price pressures, which have resulted in increased consumption and investment on the demand side, together with growth in the construction and services sectors on the supply side. However, sluggish performance across key European trading and investment partners has limited external demand, and previous rapid growth in demand for services (particularly tourism) has plateaued. As a result, unlike in 2023, neither trade in goods nor services is expected to contribute to growth in 2024. During the year, the slowdown in inflation and increase in wages has also contributed to growth by supporting higher disposable incomes. Uncertainty related to the strength of demand in the EU and its impact on the region remains high, and retaining the growth momentum will require a combination of structural reforms and closer economic integration. This Regular Economic Report (RER) for fall 2024, covers economic developments, prospects, and economic policies in the Western Balkans region: Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia.
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“World Bank. 2024. Western Balkans Regular Economic Report No. 26, Fall 2024: Retaining the Growth Momentum. © World Bank. http://hdl.handle.net/10986/42267 License: CC BY-NC 3.0 IGO.”
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