World Bank Group2015-01-202015-01-202015-01https://hdl.handle.net/10986/21314Coping with Floods, Strengthening Growth, from the South East Europe Regular Economic Report explains that South East Europe s (SEE6) s economy is estimated to have stagnated in 2014 on the back of flood-induced contraction in Serbia and a sharp slowdown in Bosnia and Herzegovina and Montenegro. The regional economy grew 0.2 percent in 2014, insufficient to improve living standards or to make a dent in the region s high unemployment rate. External demand for SEE6 exports was a key positive contributor to economic growth in 2014 as the region s exports gained market share, despite the weak Eurozone performance and disappointing global recovery. Domestic demand remained subdued because of delayed or reduced public and private investments and weak consumption. Devastating floods in large parts of the region further weighed on the SEE6 economic activity in 2014. The weak regional economic performance masks notable differences among the SEE6 countries. In 2014, the Serbian economy is estimated to have contracted by 2 percent for a third time since the global crisis and Bosnia and Herzegovina is stagnating. Economic growth rates in Kosovo and Montenegro are estimated to have moderated in 2014. Only Albania and FYR Macedonia showed signs of a more sustained recovery on the back of increasing exports, particularly in the second half of the year. The floods were the main culprit behind the weak domestic demand and the overall sluggish economic performance in SEE6. Robust exports only partially offset the SEE6 s weak domestic demand, leaving external imbalances in vulnerability. The average fiscal deficit in SEE6 is estimated to have increased by 0.4 percent of GDP to 4.2 percent in 2014 due to faster growth in expenditures than revenues. The SEE6 region as a whole is projected to grow 1.3 percent in 2015, supported by a slowly recovering external demand, especially in Europe, and stabilization of international energy prices at around current levels.en-USCC BY 3.0 IGOACCOUNTINGAGRICULTURAL COMMODITYAMOUNT OF CAPITALARREARSASSET QUALITYAUCTIONAVERAGE DEBTBALANCE SHEETSBANK ASSETBANK LENDINGBANK PROFITABILITYBANK RECAPITALIZATIONBANKING SECTORBANKING SECTOR ASSETSBANKING SECTORSBANKING SYSTEMBANKING SYSTEMSBASIS POINTSBOOK VALUEBROAD MONEYBUSINESS CONFIDENCECAPITAL ADEQUACYCAPITAL EXPENDITURESCAPITAL FLOWSCAPITAL INFLOWSCAPITAL INVESTMENTCAPITAL MARKETCAPITAL STOCKSCAPITALIZATIONCDSCENTRAL BANKCENTRAL BANKSCOLLATERALCOMMODITY PRICESCONSOLIDATIONCORRUPTIONCREDIT GROWTHCREDIT LINESCREDITORSCURRENCY BOARDCURRENCY BOARD ARRANGEMENTCURRENT ACCOUNTCURRENT ACCOUNT DEFICITCURRENT ACCOUNT DEFICITSDEBTDEBT ACCUMULATIONDEBT ISSUANCEDEBT LEVELSDEBT MANAGEMENTDEBT RESTRUCTURINGDEBT SOURCEDEMAND FOR CREDITDEMAND-SIDE FACTORSDEPOSITDEPOSIT MOBILIZATIONDEPOSITSDERIVATIVESDEVELOPING COUNTRIESDIRECT INVESTMENTDOMESTIC CURRENCYDOMESTIC DEBTECONOMIC ACTIVITYECONOMIC CONDITIONSECONOMIC DEVELOPMENTECONOMIC DEVELOPMENTSECONOMIC GROWTHECONOMIC POLICIESEMERGING ECONOMIESEMERGING MARKETSEMPLOYMENTEQUIPMENTEUROBONDEUROPEAN CENTRAL BANKEXCHANGE RATEEXPENDITUREEXPENDITURESEXPORT GROWTHEXPORT PERFORMANCEEXPORTERSEXTERNAL BORROWINGEXTERNAL DEBTFINANCIAL CRISISFINANCIAL FLOWSFINANCIAL INSTITUTIONSFINANCIAL MANAGEMENTFINANCIAL MARKETSFINANCIAL SECTOR DEVELOPMENTFINANCIAL STABILITYFINANCIAL SYSTEMFINANCIAL SYSTEMSFINANCING SOURCESFISCAL DEFICITFISCAL DEFICITSFISCAL POLICIESFLEXIBLE EXCHANGE RATEFOREIGN BANKFOREIGN BANKSFOREIGN CURRENCIESFOREIGN CURRENCYFOREIGN DEBTFOREIGN EXCHANGEFOREIGN EXCHANGE RESERVEFOREIGN INVESTORSGOVERNMENT FINANCINGGOVERNMENT SPENDINGGROSS DOMESTIC PRODUCTHIGH-YIELD BONDHOLDINGHOLDINGSHOST COUNTRIESHOUSEHOLD INCOMESHOUSEHOLDSHOUSINGHUMAN CAPITALINFLATIONINFLATIONSINSOLVENCY REGIMEINSURANCEINSURANCE COMPANIESINSURANCE MARKETSINTEREST EXPENDITURESINTEREST RATEINTEREST RATESINTERNATIONAL BANKINTERNATIONAL BONDINTERNATIONAL BOND MARKETSINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETSINTERNATIONAL FINANCEINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL INTERESTINTERNATIONAL INTEREST PAYMENTINTERNATIONAL SETTLEMENTSINVESTMENT CLIMATEINVESTMENT DECISIONSISSUANCEJOB CREATIONLABOR COSTSLABOR FORCE PARTICIPATIONLABOR MARKETLABOR MARKETSLEGAL FRAMEWORKLEGAL FRAMEWORKSLEGAL SYSTEMLEGISLATIVE FRAMEWORKSLIQUIDITYLIQUIDITY RATIOLIVING STANDARDSLOANLOAN-TO-DEPOSIT RATIOSLOCAL CURRENCYMACROECONOMIC POLICIESMACROECONOMICSMARKET CONDITIONSMARKET CONFIDENCEMARKET REFORMSMARKET SHAREMATURITIESMIGRATIONMINIMUM WAGEMINISTRIES OF FINANCEMINORITY INVESTORSMONETARY POLICIESMONETARY POLICYMONEY SUPPLYNATIONAL BANKSNATURAL DISASTERSNEW MARKETSNON-PERFORMING LOANSNONPERFORMING LOANSNPLOIL PRICESPAYMENT OBLIGATIONSPENSIONPOLITICAL UNCERTAINTYPORTFOLIOPORTFOLIO INVESTMENTPORTFOLIO QUALITYPORTFOLIOSPRIVATE EQUITYPRIVATE INVESTMENTSPRIVATIZATIONPRODUCTION CAPACITIESPRODUCTIVE INVESTMENTPRODUCTIVITYPUBLIC DEBTPUBLIC EXPENDITURESPUBLIC FINANCEPUBLIC FINANCESPUBLIC INVESTMENTPUBLIC INVESTMENTSPUBLIC SPENDINGRATES OF RETURNREAL INTERESTREAL INTEREST RATEREAL SECTORRECESSIONREGULATORY FRAMEWORKSREMITTANCEREMITTANCESRESERVERESERVE ASSETSRESERVE REQUIREMENTRESERVESRETURNRETURN ON ASSETSRETURNSRISK MANAGEMENTRISK PROFILESSAVINGSSECURITIESSHORT-TERM DEBTSUBSIDIARIESSUBSIDIARYSUPERVISORY AUTHORITIESSURCHARGESTAXTAX LAWSTELECOMMUNICATIONSTRADE BALANCETRADINGTRANSPORTUNEMPLOYMENTVALUATIONSWAGES10.1596/21314