Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro and Serbia added 190,000 jobs last year but economic growth declined, says the World Bank’s latest report on the Western Balkans.
Average GDP growth in Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro and Serbia declined from 3.1 per cent in 2016 to an estimated 2.4 per cent in 2017 due to lower investments and a harsh winter, according to the World Bank’s latest economic report on the Western Balkans, published on Wednesday.
Bosnia and Herzegovina however became the leading country in the region when it came to lowering the unemployment rate.
“From the perceptive of the region, this is a very positive step for Bosnia and things are not that bad, but the country must continue with its reform agenda and the biggest change at the moment is the upcoming elections,” Sandra Hlivnjak, an economist for World Bank in Bosnia told Anadolu on Wednesday in Sarajevo during the presentation of the report.
GDP expansion of between 3 per cent and 4.4 per cent in Albania, Bosnia, Kosovo and Montenegro was tempered by no growth in Macedonia and an increase of just 1.9 per cent in Serbia, the World Bank said.
But the overall outlook is positive, as growth in Serbia and Macedonia is recovering, while Bosnia and Kosovo are seeing an increase in investments.
Meanwhile growth in Albania and Montenegro has moderated as large investment projects wind down, and much-needed fiscal consolidation is continuing in Montenegro.
Employment is on the rise in the region, with all six countries adding jobs in 2017, particularly in the wholesale and retail trade.
The average employment rate for the Western Balkans has been steadily rising, reaching 42.6 per cent in September 2017, while youth unemployment fell from 37.5 per cent in 2016 to 31.5 per cent in 2017.
However, according to the report, the pace of job creation is slowing, with the annual rate of employment growth falling from 4.5 per cent in 2016 to 3.2 per cent in September last year.
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