World Bank Group2016-01-272016-01-272015-09https://hdl.handle.net/10986/23684Economic activity in the six South East European countries (SEE6) is picking up speed, and growth in the region is expected to average 1.8 percent for 2015. The highest growth rates projected are 3.4 percent for Montenegro and 3.2 percent for FYR Macedonia; the lowest is Serbia’s 0.5 percent. Although they trail the rest of the SEE6 region, Serbia and Bosnia and Herzegovina, which were hit heavily by floods in mid-2014, are recovering faster than expected. As 2015 progresses, a recovery in domestic demand is stimulating economic growth throughout the region. Private investment has become the main driver of growth. Developments in the global economy have also helped, especially lower oil prices and a pick-up in demand in the European Union (EU), a major market for the region.en-USCC BY 3.0 IGOLIVING STANDARDSTOTAL REVENUEMONETARY POLICYDEFICITRISKSUNEMPLOYMENT RATESGOVERNMENT EXPENDITURESECONOMIC GROWTHDEPOSITSPRODUCTIONEXCISE TAXESLAGSADVERSE IMPACTSVALUATIONMARKET DEVELOPMENTSFISCAL DEFICITSDEFLATIONINCOMEINTERESTGOVERNMENT DEFICITPROJECTIONSEXPECTATIONSINTEREST RATEREAL GDPPRIVATE CREDITEXCHANGEECONOMIC DEVELOPMENTSGDP PER CAPITAINDEXATIONLIQUIDITYEXPORTSBANKING SYSTEMSREVENUESFISCAL POLICYWELFAREINCENTIVESLOANTAXINPUTSNON-PERFORMING LOANSPAYMENTSCENTRAL BANKSINFLATIONINTERNATIONAL BANKTRENDSECONOMIC OUTLOOKBUDGETCENTRAL BANKECONOMIC ACTIVITYDEVELOPMENTSMALL BUSINESSMACROECONOMIC STABILITYLABOR MARKETFISCAL POLICIESTRADE BALANCEOIL PRICESGLOBAL ECONOMYCOSTSCURRENCYEXPORT GROWTHEXCHANGE RATE MOVEMENTSINCOME GROWTHEXCHANGE RATESOPTIONSEXTERNALITIESNET EXPORTSMARKETSDEBTPRIVATE INVESTMENTHOUSEHOLD INCOMERETURNDEFICITSBUDGET DEFICITSINCOME LEVELSECONOMIC POLICIESLOANSTAX REVENUESDIVIDENDSNATURAL RESOURCESAVERAGINGCOMMODITY PRICEFINANCETAXESPROFIT MARGINUNEMPLOYMENTLEADING INDICATORSECONOMIC RISKSCONSUMPTIONHUMAN CAPITALVALUE ADDEDGOVERNMENT BUDGETECONOMIC PERFORMANCECAPITALWAGESOWNERSHIP STRUCTUREECONOMIC OUTCOMESDISCOURAGED WORKERSFINANCIAL STABILITYUNEMPLOYMENT RATEFINANCIAL CRISISVALUEPENSIONSCOMPETITIVENESSFISCAL BURDENCREDITMACROECONOMICSTRADE DEFICITPURCHASING POWERDEVELOPMENT STRATEGYDEMANDAGGREGATE DEMANDECONOMYAGRICULTUREEXPENDITURESASSET QUALITYASSETSMARKETBENCHMARKMONETARY POLICIESPUBLIC DEBTPRODUCTIVE INVESTMENTSINFLATION RATESTAXATIONGOVERNMENT DEBTTRADEGDPGOODSBANK LOANSGROWTH RATEINVESTMENTSHARECONTROLLED PRICESBALANCE SHEETSPOVERTYPRODUCT MARKETSREVENUEECONOMIC INDICATORSINVESTMENTSCONSUMER PRICE INDEXLENDINGCREDIT GROWTHEXCHANGE RATELABOR MARKETSOUTCOMESFINANCIAL SECTORARREARSGROWTH POTENTIALPRICESGUARANTEEGROWTH PROJECTIONSNONPERFORMING LOANSBENEFITSReportWorld Bank10.1596/23684