West Balkans Regular Economic Report no. 21, Spring 2022 : Steering Through Crises
Just as the economies of the Western Balkans were looking to growth recovery beyond the pandemic, a new set of challenges confronted the region. The economies of the Western Balkans saw a strong growth rebound in 2021 with a broad-based bounce back...
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| Format: | Report |
| Language: | English |
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Washington, DC: World Bank
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099236004262237525/P17720607706c30e90841607b7d53ee8106 http://hdl.handle.net/10986/37368 |
| Summary: | Just as the economies of the Western
Balkans were looking to growth recovery beyond the pandemic,
a new set of challenges confronted the region. The economies
of the Western Balkans saw a strong growth rebound in 2021
with a broad-based bounce back in economic activity.
Financial stability remains sound due to support measures,
but vigilance will be needed given exceptional uncertainty.
There was especially strong growth in trade in 2021 as the
region benefited from a recovery in global demand, but the
conflict between Russia and Ukraine is expected to disrupt
this trend. The economies of the Western Balkans now face an
unusually uncertain outlook. An expanded conflict or
prolonged war between Russia and Ukraine can trigger further
disruptions to global trade and to energy and food prices.
Refinancing risks can arise if external financial market
conditions continue to tighten. Debt sustainability may
become a concern if limited fiscal space is eroded by policy
responses to higher energy and food prices. Risks of
political polarization also remain. |
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