SARAJEVO, April 28 (Xinhua) -- Economic growth in the Western Balkans is projected to remain resilient despite global uncertainty, the World Bank said in its latest economic report on Monday.
The report forecasts that the combined growth of the Western Balkan region will reach 3.2 percent this year, 0.5 percentage point lower than previously projected. Growth is expected to accelerate to 3.5 percent in 2026.
However, the report warned that global trade uncertainty could weigh on the region, mainly through reduced demand from the eurozone, affecting trade, investment, and remittances.
To sustain resilience, the World Bank recommends diversifying sources of growth and renewing structural reforms, including eliminating labor market barriers, enhancing regional integration, and boosting market competition.
Faster implementation of European Union (EU) accession reforms, such as joining the Single Euro Payments Area and introducing "green lanes" for trade, could further strengthen business confidence and attract investment, the report noted.
It also emphasized the need for the Western Balkans to adapt to rising climate challenges by strengthening social protection systems and reskilling workers for opportunities in the green economy.
