The report projects that six economies in the region, Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia, will see average growth rise to 3.1% in 2026–2027, News.Az reports, citing Reuters.
For 2026, the region is expected to grow by 2.9%, followed by an acceleration to 3.2% in 2027, driven largely by infrastructure investment and stronger external demand.
The World Bank said export performance, particularly in services such as tourism and information and communications technology, will play a key role in supporting growth. Public investment projects, many linked to European Union funding, are also expected to help offset weaker consumption trends.
However, the outlook is not without risks. The report warns that slower wage growth and declining foreign direct investment could weigh on household spending and overall economic momentum.
It also highlights potential inflationary pressures linked to rising energy costs and global instability, which could disproportionately affect lower-income households and slow poverty reduction efforts in the region.
Countries across the Western Balkans, many of which are pursuing European Union membership, continue to face structural challenges, including reliance on coal-based energy systems and the need for economic diversification.
The World Bank emphasized that transitioning toward greener energy systems and aligning with EU electricity integration standards could improve long-term resilience and energy security across the region.
Despite near-term challenges, the overall outlook suggests a gradual recovery path, supported by trade growth, infrastructure development, and ongoing reform efforts across the Western Balkans.
