Brussels, European commission (Photo: Pixabay)
The Western Balkans’ economic growth slowed significantly in the first quarter of 2025, according to a European Commission report.
The region’s real GDP growth dropped to 2.3 percent from 3.3 percent in the previous quarter. All countries saw lower growth compared to the previous three months, with Serbia, the largest economy in the region, experiencing the greatest slowdown in output growth, from 3.3 to two percent. However, North Macedonia, Albania, and Kosovo remained above the three percent threshold, says the report on the economies of EU candidate countries and potential candidates.
Economic growth was driven by domestic demand. Consumption remained the key contributor to growth in the first quarter of 2025. Household consumption was supported by continued high wage growth across the region. The report further notes that trade dynamics were generally marked by higher imports than exports, resulting in negative contributions from international trade to GDP growth.
The unemployment rate declined in most countries of the region in the first three months of 2025. Unemployment in the region reached a historically low level, though it remains higher than in the EU.
To get full access to all content of interest see our
Subscription offer
Or
Register for free
And read up to 5 articles each month.
Already have an account? Please Log in.