Reuters reported on Thursday that the World Bank has forecasted improved economic growth in the Western Balkans for 2024, with further acceleration expected in 2025. According to the latest estimates, the region’s economic activity is set to increase to 3.2 percent this year, a slight rise of 0.2 percentage points from earlier predictions, and is projected to grow to 3.5 percent in 2025.

The World Bank emphasized the necessity for the Western Balkans to persist in reform efforts to bridge the developmental gap with the European Union and enhance the quality of life for its citizens. Key areas of focus include investments in the greening of urban areas to bolster economic development more effectively.

The report includes specific economic projections for each of the six nations in the region—Kosovo, Albania, Bosnia and Herzegovina, North Macedonia, Serbia, and Montenegro—as part of the broader Economic Report for Europe and Central Asia released today.

Xiaoqing Yu, the World Bank’s Western Balkans regional director, noted that despite recent challenges like the COVID-19 pandemic and energy crises, there are positive indications that economic growth will revert to pre-pandemic levels, accompanied by a continued reduction in poverty. However, Yu pointed out that the progress made so far is still not enough to meet the aspirations of the region’s citizens or achieve the living standards of EU countries.

Yu highlighted that the new EU Growth Plan for the Western Balkans offers a valuable chance to spur economic growth through strategic reforms and investments, particularly in the green economy.