Western Balkans growth outlook improves on exports and investment

Wednesday 08 April 2026 - 14:20

Economic prospects for the Western Balkans are expected to strengthen in the coming years, supported by rising exports and increased public investment, according to projections from the World Bank.

The region—comprising Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia—is projected to see moderate growth accelerate over the next two years after a period of slower expansion.

Stronger performance in exports, particularly in services such as tourism and information technology, is expected to play a central role in boosting economic activity. In addition, infrastructure projects supported by the European Union and other public investments are likely to stimulate development and improve connectivity across the region.

However, challenges remain. Rising energy prices and inflationary pressures could weigh on household incomes and slow consumption growth. Lower foreign investment inflows and a cooling construction sector may also limit the pace of expansion.

Despite these constraints, policymakers are increasingly focusing on structural reforms and long-term strategies. Efforts to enhance energy security and promote a transition toward greener industries are seen as essential for aligning the region with European standards and improving economic resilience.

Analysts note that the Western Balkans’ aspirations for closer integration with the European Union continue to shape economic policy, encouraging reforms aimed at stability, competitiveness, and sustainable growth.