World Bank: Western Balkan countries are seeing employment increase

Regional economic growth is expected to reach 2.6 per cent in 2017, leading to the creation of 230,000 new jobs by June 2017 an increase of 3.8 per cent compared to the previous period.

Despite high unemployment in all six countries in the region, employment rates returned to their first levels in Albania, Kosovo, FYR Macedonia, Montenegro and Serbia.

More than half of the new jobs in the region have been created by the private sector.

According to the World Bank's latest Economic Rule Report for the Western Balkans ( BB RERE, presented today in Pristina, the six Western Balkan countries are expected to have economic growth in 2017.

Meanwhile, it is expected that the pace of regional growth will accelerate to 3.3 per cent to 2018 and 3.6 per cent in 2019.

Investments sparked strong economic growth in Albania, Kosovo and Montenegro, while consumption led to a steady increase in Bosnia and Herzegovina.

The earliest political crisis in FYR Macedonia, as well as very severe winters in Serbia, caused economic growth contractions in these two countries.

The fiscal deficit in 2017 is projected to expand to 2 per cent of the local Bruto production due to increased social benefits and rapid execution of the 6th Street project. Economic growth in Kosovo in 2017 is expected to reach 4.4 per cent, up from 3.4 per cent in 2016, led mainly by investments and supported by consumption and a revival of exports.

Exports are being stimulated by the strong growth of Eurozone countries, increased production of basic metals, high international prices for nixlin and lead, and a wide-based increase in goods and commercial services production.

The prospect of economic growth in Kosovo is positive, and economic growth is projected to reach 4.8 percent in 2018 and 2019, but projected improvement is the subject of risks, including perceptions about political stability, and the potential lack of capacities to advance ambitious public investment plans.

It is encouraging to note that nearly a decade after the global financial crisis, employment is finally recovering at pre-crisis levels in most of the region”, said Linda Van Gelder, World Bank Regional Director for the Western Balkans.

The “is now more violent than ever for Western Balkan countries to maintain the pace of reforms, with the aim of creating opportunities and improving living standards for all citizens of the Balkans Per/Dimor”.

Economic growth, coupled with the creation of new jobs, also contributed to poverty reduction in the region.

The poverty rate for 2017 is projected to be 23.6 percent, which represents a drop by one percentage point compared to a year ago.

This means that about 124,000 people have emerged from poverty during this period.

While the prospect of economic growth remains positive for Western Balkan countries, they continue to be still exposed to risks.

Policy uncertainty or changing their edge can slow investment and economic growth.

According to the report, these risks can be eased through maintaining fiscal sustainability by already accelerating structural reforms as strengthening public finances, improving the environment for investment and integration, and progress with the membership agenda of the European Union (BE).