World Bank2020-10-212020-10-212020-10-22https://hdl.handle.net/10986/34644As elsewhere in the world, in the Western Balkans the COVID-19 pandemic has plunged countries into deep recession. Because of the recession, labor market conditions have taken a turn for the worse and welfare improvements have been interrupted, although government response measures cushioned the blow. Policy efforts in the region need to remain focused on fighting the pandemic, limiting the economic damage and facilitating recovery.CC BY 3.0 IGOCORONAVIRUSCOVID-19PANDEMIC IMPACTECONOMIC RECESSIONLABOR MARKETPANDEMIC RESPONSEJOB SUPPORT PROGRAMPOVERTY REDUCTIONFISCAL TRENDSINFLATIONFINANCIAL SECTOREXTERNAL SECTORPOLICY REFORMReportWorld Bank10.1596/34644