May 27, 2022
Despite a better-than-expected recovery from the recession caused by the COVID-19 pandemic, the six Western Balkans countries are confronting a new set of economic problems, according to the latest Western Balkans Regular Economic Report.
After contracting by 3.2 percent in 2020, the region’s GDP grew by 7.4 percent in 2021. This resumption of recovery resulted in significant job creation, which helped to eliminate poverty in all six Western Balkan economies. The Western Balkan employment rate grew to a record high of 45.8% in 2021, owing mostly to the employment recovery in Serbia and Kosovo.
Growth in North Macedonia was fueled by a significant comeback in spending, aided by both fiscal stimulus and pent-up demand, as well as a loosening of movement and travel restrictions. The country’s unemployment rate fell to a new low, and poverty levels began to decline again.
However, the post-pandemic recovery has been slowed by the conflict in Ukraine, which has sent shockwaves throughout the area. In 2022, the Western Balkans region is expected to grow at 3.1 percent, with North Macedonia growing at 2.7 percent.
Source: The World Bank
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