Oct 17 (Reuters) – Economic growth in the six Western Balkans countries is projected to moderately grow through 2025, thanks to increased consumption, investments and purchasing power, the World Bank said in a bi-annual report made public on Thursday.
Albania, Bosnia, Kosovo, Montenegro, North Macedonia and Serbia will collectively grow 3.7% in 2025, 0.2 percentage point up from its previous estimate in April, the report said.
The region’s growth is expected to be 3.3% this year.
Still, the bank warned of risks that could hamper economic expansion and the region’s positive outlook.
“The region remains vulnerable to … sluggish global growth, a rebound in inflation, political uncertainty, and extreme weather events,” Isolina Rossi, a World Bank economist said in the report.
Retaining the growth momentum requires structural reforms, including those outlined in the European Union’s growth plan for the region, the bank said.
Under the plan, the EU wants to allocate 6 billion euros ($6.51 billion) in infrastructure and structural reforms to help the region improve integration with the single market by reducing border clearance times and modernizing payment systems.
