World Bank Group2016-06-022016-06-022016-04https://hdl.handle.net/10986/24399Growth in the six South East European countries (SEE6) rebounded to 2.1 percent in 2015, as investment revived. The SEE6 region is not only growing but also rebalancing to more durable sources of growth. While higher growth in 2015 brought new jobs in the private sector, and helped poverty reduction to resume, unemployment is still entrenched. In 2015, fiscal deficits continued to narrow in all SEE6 countries except Montenegro. With inflation at historic lows, accommodative monetary policy supported growth, and credit to the economy slowly began to grow. The near-term baseline outlook for the region is positive. Fiscal and current account deficits must decline further to support growth. Sustaining the nascent rebalancing requires unlocking the growth potential of the SEE6 economics by reversing productivity dynamics that have been deteriorating since 2008. The agenda for reducing the structural rigidities that impede growth is broad based and centered on five pillars: eliminate disincentives and barriers to formal; employment; improve the business climate and governance; reduce the size of government while improving quality of service delivery; deepen trade and financial integration; and ensure that natural resource use is sustainable.en-USCC BY 3.0 IGODEBT SOURCECONTINGENT LIABILITIESBANKING REGULATIONMONETARY POLICYEQUIPMENTACCOUNTINGCHECKSDEPOSITSLOCAL ECONOMYVALUATIONINTERESTPOST-CRISIS PERIODPUBLIC INVESTMENTSREMITTANCEPRIVATE CREDITGOVERNMENT REVENUESECONOMIC DEVELOPMENTSREPAYMENTSBANKING SYSTEMSEXPORTERSREVENUESPORTFOLIOFISCAL POLICYCAPITAL ADEQUACYLOANBORROWERSBOND FINANCINGCAPITAL STOCKPENSION REFORMSAMOUNT OF CAPITALLABOR MARKETBANK REGULATIONOIL PRICESINVESTMENT SPENDINGMARKET REFORMSCURRENCYEXPORT GROWTHBANK ASSETSINCOME GROWTHDOMESTIC CAPITALJUDICIAL REFORMCAPITAL FORMATIONFINANCESEXCHANGE RATESMONETARY FUNDEMERGING MARKETDEBTCAPITAL MARKETMARKETSLOCAL GOVERNMENTSETTLEMENTPUBLIC FINANCEBUDGET DEFICITCAPITAL STOCKSINVENTORYBANK POLICYCURRENT ACCOUNT DEFICITSBANKING SECTORFISCAL DEFICITINVESTMENT DECISIONSSUPERVISORY AUTHORITIESEMERGING MARKETSHUMAN CAPITALTRADE BALANCESGOODGOVERNMENT BUDGETTRANSPARENCYMARKET CONDITIONSTURNOVERFUTUREFOREIGN DIRECT INVESTMENTFIXED CAPITALFOREIGN INVESTMENTINVESTMENT PROJECTSBANK BALANCE SHEETSISSUANCESHARESLOCAL CURRENCYMONETARY POLICIESDEBT RATIOSDEPOSIT MOBILIZATIONPUBLIC DEBTTREASURYCREDIT RISKINSURANCECURRENCIESGOVERNMENT DEBTGOVERNMENT POLICIESEUROBONDDOMESTIC CREDITCOMMERCIAL BANKSBANKING UNIONPUBLIC FINANCESEMERGING MARKET BONDSINTEREST RATE DIFFERENTIALPRIVATE INVESTMENTSCOLLECTION PROCESSESPORTFOLIO INVESTMENTBENCHMARK YIELDSCAPITAL GROWTHCONSUMER PRICE INDEXLENDINGRISK AVERSIONREMITTANCESPUBLIC SPENDINGLOCAL CURRENCIESFINANCIAL SYSTEMSLABOR MARKETSPAYMENT SYSTEMSCOMMODITY PRICESLIABILITIESARREARSINTERNATIONAL MARKETSFOREIGN BANKCURRENCY MISMATCHESHOUSEHOLD INCOMESLIVING STANDARDSTARIFFSDEFICITDEPOSITCAPITAL MARKETSBASIS POINTSGOVERNMENT EXPENDITURESNATIONAL BANKSNPLBROAD MONEYSTOCKFISCAL DEFICITSFUTURESMARKET DEVELOPMENTSGOVERNMENT DEFICITGUARANTEESPENSION SYSTEMSGOVERNMENT SPENDINGEXPORT PERFORMANCEINTEREST RATEEXCHANGELOCAL GOVERNMENTSINTERNATIONAL FINANCIAL MARKETSLIQUIDITYTAX COLLECTIONACCUMULATION OF DEBTCDSBONDSTAXMARKET DEPTHNON-PERFORMING LOANSREFERENDUMBOND YIELDSBUDGETINGCENTRAL BANKSLEVEL PLAYING FIELDINFLATIONINTERNATIONAL BANKPENSIONBANK LENDINGBUDGETCENTRAL BANKTRADE BALANCECREDIT RATINGSGLOBAL ECONOMYLOCAL BANKSTELECOMMUNICATIONSPOLICY RESPONSESPORTFOLIOSCONTRACTSINFLATIONARY PRESSURESTRADINGINTEREST RATESOPTIONSFLOATING EXCHANGE RATESPRIVATE INVESTMENTEXTERNAL DEFICITSHOUSEHOLD INCOMERETURNDEFICITSCAPITAL REQUIREMENTSINTERNATIONAL DEVELOPMENTECONOMIC POLICIESBASIS POINTDIRECT INVESTMENTLOANSTAX COLLECTIONSRESERVESFINANCIAL SYSTEMFINANCEFOREIGN CURRENCYPUBLIC INVESTMENTTAXESEXPENDITUREDEBT LEVELSBANK BORROWERSEQUITYCREDIT EXPANSIONINVESTORSCONSUMER LOANSCOMPLIANCE COSTSFINANCIAL CRISISFOREIGN FINANCINGPENSIONSRETURNSBUDGETSSTRUCTURAL PROBLEMSCONTRACTEXPENDITURESAMORTIZATIONASSET QUALITYCAPITAL FLOWSPROPERTYCURRENT ACCOUNT DEFICITT-BILLACCESS TO LOANSBALANCE SHEETMARKETFOREIGN EXCHANGETAX CREDITSGOODSINVESTORSECURITYEQUITY MARKETSDURABLEFINANCIAL MARKETINTERNATIONAL MARKETSTOCKSINVESTMENTNATIONAL BANKBONDHUMAN RESOURCESSOVEREIGN BONDSSHAREINVESTMENT CLIMATEBALANCE SHEETSCOLLATERALPOVERTYINTEREST COSTSFINANCIAL MARKETSLENDING REQUIREMENTSCAPITAL INFLOWSREVENUEEXTERNAL DEBTPROFITINVESTMENTSCREDIT GROWTHSWAPSEXCHANGE RATEPROFITSGUARANTEENONPERFORMING LOANSEXTERNAL BORROWINGCORPORATE GOVERNANCEReportWorld Bank10.1596/24399