Devastating flooding in some countries brought the economy of South East Europe (SEE6) to a standstill in 2014, with growth of only 0.2 percent, according to the World Bank’s latest South East Europe Regular Economic Report (SEE RER) launched recently.
According to the report, in 2015, the SEE6 region is expected to recover modestly, with aggregate growth projected to average 1.3 percent.
Growth is likely to be held back in 2015 by a weak recovery in Bosnia and Herzegovina and Serbia. The rest of the region is expected to grow by over 3 percent in 2015, with economic growth reaching 3.8 percent in FYR Macedonia.
Growth prospects are dependent on external factors, including a sustained recovery of external demand, especially in Europe, and stabilization of international energy prices at around current levels.
Economic activity in SEE6 is dampened by weak domestic demand as consumer and business confidence remain weak over lingering political uncertainty, chronically high unemployment, and banking systems saddled with high nonperforming loans. Therefore, the report emphasizes that economic growth in the near- and the medium-term in SEE6 can be supported through sound and well-prioritized economic policies.
Read more in the new World Bank report here.