BB: Half of Western Balkan jobs belong to private sector

In the regular economic report for the Western Balkans (BB), which the World Bank presented Thursday, it is said that Western Balkan countries mark job growth, the Anadolu Agency (AA) reports.

According to the report, regional growth is expected to be 2.6 percent in 2017, resulting in 230,000 new jobs by June 2017, which compared with last year is 3.8 percent higher.

Despite the high unemployment rate in the six countries of this region, the employment rate in Albania, Kosovo, Macedonia, Montenegro, Serbia and Bosnia and Herzegovina ( BiH is back to the pre- 2008 level, says the BB report, where it notes that more than half of the jobs belong to the private sector.

The regular economic report for the Western Balkans, which was released this time by Pristina, predicts that all six countries will score increases in what regional growth is designed to be 3.3 percent in 2018 and 3.6 percent in 2019. The report says that investments have made a rapid development in Albania, Kosovo and Montenegro, while spending contributed to a stable development in BiH.

As for Macedonia, the report stresses that the political crisis has negatively affected growth in this country, while in Serbia it has made the same winter very cold. Bosnia and Herzegovina this year will have 3.0 percent growth, and in the next two years, 3.2 and 3.4 percent.

Kosovo this year will have a 4.4 per cent increase, while in the next two years 4.8 per cent and 4.8 per cent, while Macedonia will close in 2017 by 1.5 and the next two years by 3.2 and 3.9 per cent. Montenegro will close by 2.9 percent growth in the next two years by 2.8 and 2.5 percent, while Serbia will close by 2.0 to continue in the next two years by 3.0 and 3.5 percent.

It is encouraging to see that almost a decade from the global financial crisis, employment has eventually returned to the pre-crisis level in most of the region”, says Linda Van Geller, World Bank Country Director for Western Balkan Countries. Economic growth, along with new jobs, has contributed to poverty reductions, says BB, under which 124,000 people are out of poverty.

“Kosovo has marked an increase in employment”

Economist at the BB office in Pristina Agim Demukaj, who presented the report on Kosovo, said Kosovo has scored an increase in employment. As he said, employment in this country has marked an 8.5 percent increase, mainly in construction and industry.

He added that foreign direct investments that are related to the Kosovo diaspora are also added, mainly from European countries such as Germany, Switzerland, Austria, Italy, but also from Turkey. As for the rise in credit, Demukaj said: “in Kosovo improved market conditions and low interest rates have driven private credit growth. ”

“Macedonia with the highest unemployment rate in the region”

Economist at the BB office in Skopje, Bojan Shimbov, presenting the semi-year report for Macedonia, said the policy crisis, which hit the country in 2015 and culminated in the election of the new government in June 2017, has plagued economic activities at all times.

However, the World Bank notes that in the early part of 2017, unemployment has marked a 2.7 - percent reduction in 14,000 new jobs. Macedonia has the highest unemployment rate in the region, so our recommendation is that the government continue to face this phenomenon. I had also isolated the long-term high unemployment rate with a particular emphasis on youth”, Shimbov said.

He expressed optimism about the coming period, as he said, the key <x0-tracking for Macedonia's economic development, which is the political crisis, has already passed, so the forecasts are that the country in the next two years will have growth of 3.2 and 3.9 percent”.

Albania's “Economic expansion has created jobs”

The World Bank estimates that growth in Albania this year will be 3.8 percent, 3.6 percent in 2018, and 3.5 percent in 2019.

According to the World Bank report, economic expansion in Albania has created jobs. The report also notes that to accelerate growth, it will be important for Albania to accelerate the process of reforms to consolidate public finances, improve spending efficiency, reduce risks from the energy and finance sector.

In Albania net exports contributed positively to the first half of 2017, while the main drivers of economic growth in the country are the construction sector and the service sector. According to the report, the medium-term economic outlook for Albania is positive, even though moderate growth is forecast.