The World Bank expects economic growth across the Western Balkans to accelerate in 2026 and strengthen further in 2027. Consumption and investment will support this growth.

The region’s economies have remained resilient to shocks and continue to converge with the European Union. However, businesses need more efficient trade rules to compete internationally and create better-quality jobs, according to the World Bank’s latest Western Balkans Regular Economic Report, published today.

The report projects average economic growth of 3.1% in Albania, Bosnia and Herzegovina, Kosova, Montenegro, North Macedonia and Serbia in 2026, up from 2.6% in 2025. It forecasts growth of 3.4% in 2027 and the same rate in 2028.

Xiaoqing Yu, the World Bank’s Director for the Western Balkans, said the region had demonstrated economic resilience despite heightened geopolitical uncertainty and slower growth among its main trading partners.

However, Yu warned that resilience alone would not bring regional incomes closer to European Union averages or create enough quality jobs. She said a dynamic private sector would drive job creation. The next phase of growth also requires more efficient, predictable rules and the removal of trade barriers at borders and within domestic markets.

/Monitor/