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    World Bank: Effects of war in Ukraine spill over to Western Balkans

    The World Bank has estimated that the growth rate of the Western Balkans will drop to 3.2 percent in 2022, due to the consequences of the war in Ukraine.

    According to the report, the biggest risks to the Western Balkans stem from possible disruptions in natural gas and oil supplies.

    The war as well the sanctions imposed on Russia are also reflected in the Western Balkans. The World Bank estimates that the Western Balkans’ growth rate will drop to 3.2 percent in 2022.

    Serbia is expected to grow by 3.2 percent, Croatia by 3.8 percent, BiH by 2.9 percent, Montenegro by 3.6 percent, North Macedonia by 3.2 percent and Albania by 3.2 percent.

    „The effects of the war spill over on this sub-region mainly through the raw material channel,“ the report explains.

    In the medium term, the countries of the Western Balkans are expected to benefit from the recently adopted Economic and Investment Plan for the Western Balkans of the European Union, which will mobilise funds for supporting competitiveness and inclusive growth, as well as for the green and digital transition.

     

    Izvor: N1

    Foto: Printscreen

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