The economies of the six Western Balkan countries show resilience despite economic growth estimated to moderate to 2.6% in 2023 and continued price increases, the World Bank said in its regular biennial economic report for the region on Tuesday.

“Albania, Bosnia, Kosovo, Montenegro, North Macedonia and Serbia have exceeded pre-pandemic growth levels, despite the fallout from the Russian invasion of Ukraine, higher energy and food prices, adverse weather conditions and tight financial conditions. Growth is expected to be driven by private consumption, exports and public investment in some countries, but the region needs to rebuild buffers to prepare for future shocks and undertake supply-side reforms to prepare for more sustainable growth and greener,” reads the report.

“To continue weathering the storm presented by multiple economic shocks, countries can achieve high incomes by pursuing reforms that boost productivity in the medium term, such as accelerating regional integration, increasing levels of market competition and attracting higher quality investments,” said Xiaoqing Yu, World Bank Director for the Western Balkans. Inflation in the Western Balkans rose to a two-decade high in 2022, with food inflation averaging 20%, and price pressures remain elevated in early 2023, calling for further monetary policy tightening,” the bank said.

/k.s/