South East Europe Regular Economic Report, January 2015 : Coping with Floods, Strengthening Growth

Coping with Floods, Strengthening Growth, from the South East Europe Regular Economic Report explains that South East Europe s (SEE6) s economy is estimated to have stagnated in 2014 on the back of flood-induced contraction in Serbia and a sharp slowdown in Bosnia and Herzegovina and Montenegro. The regional economy grew 0.2 percent in 2014, insufficient to improve living standards or to make a dent in the region s high unemployment rate. External demand for SEE6 exports was a key positive contributor to economic growth in 2014 as the region s exports gained market share, despite the weak Eurozone performance and disappointing global recovery. Domestic demand remained subdued because of delayed or reduced public and private investments and weak consumption. Devastating floods in large parts of the region further weighed on the SEE6 economic activity in 2014. The weak regional economic performance masks notable differences among the SEE6 countries. In 2014, the Serbian economy is estimated to have contracted by 2 percent for a third time since the global crisis and Bosnia and Herzegovina is stagnating. Economic growth rates in Kosovo and Montenegro are estimated to have moderated in 2014. Only Albania and FYR Macedonia showed signs of a more sustained recovery on the back of increasing exports, particularly in the second half of the year. The floods were the main culprit behind the weak domestic demand and the overall sluggish economic performance in SEE6. Robust exports only partially offset the SEE6 s weak domestic demand, leaving external imbalances in vulnerability. The average fiscal deficit in SEE6 is estimated to have increased by 0.4 percent of GDP to 4.2 percent in 2014 due to faster growth in expenditures than revenues. The SEE6 region as a whole is projected to grow 1.3 percent in 2015, supported by a slowly recovering external demand, especially in Europe, and stabilization of international energy prices at around current levels.

Bibliographic Details

Main Author:	World Bank Group
Language:	English en_US
Published:	World Bank, Washington, DC 2015-01
Subjects:	ACCOUNTING, AGRICULTURAL COMMODITY, AMOUNT OF CAPITAL, ARREARS, ASSET QUALITY, AUCTION, AVERAGE DEBT, BALANCE SHEETS, BANK ASSET, BANK LENDING, BANK PROFITABILITY, BANK RECAPITALIZATION, BANKING SECTOR, BANKING SECTOR ASSETS, BANKING SECTORS, BANKING SYSTEM, BANKING SYSTEMS, BASIS POINTS, BOOK VALUE, BROAD MONEY, BUSINESS CONFIDENCE, CAPITAL ADEQUACY, CAPITAL EXPENDITURES, CAPITAL FLOWS, CAPITAL INFLOWS, CAPITAL INVESTMENT, CAPITAL MARKET, CAPITAL STOCKS, CAPITALIZATION, CDS, CENTRAL BANK, CENTRAL BANKS, COLLATERAL, COMMODITY PRICES, CONSOLIDATION, CORRUPTION, CREDIT GROWTH, CREDIT LINES, CREDITORS, CURRENCY BOARD, CURRENCY BOARD ARRANGEMENT, CURRENT ACCOUNT, CURRENT ACCOUNT DEFICIT, CURRENT ACCOUNT DEFICITS, DEBT, DEBT ACCUMULATION, DEBT ISSUANCE, DEBT LEVELS, DEBT MANAGEMENT, DEBT RESTRUCTURING, DEBT SOURCE, DEMAND FOR CREDIT, DEMAND-SIDE FACTORS, DEPOSIT, DEPOSIT MOBILIZATION, DEPOSITS, DERIVATIVES, DEVELOPING COUNTRIES, DIRECT INVESTMENT, DOMESTIC CURRENCY, DOMESTIC DEBT, ECONOMIC ACTIVITY, ECONOMIC CONDITIONS, ECONOMIC DEVELOPMENT, ECONOMIC DEVELOPMENTS, ECONOMIC GROWTH, ECONOMIC POLICIES, EMERGING ECONOMIES, EMERGING MARKETS, EMPLOYMENT, EQUIPMENT, EUROBOND, EUROPEAN CENTRAL BANK, EXCHANGE RATE, EXPENDITURE, EXPENDITURES, EXPORT GROWTH, EXPORT PERFORMANCE, EXPORTERS, EXTERNAL BORROWING, EXTERNAL DEBT, FINANCIAL CRISIS, FINANCIAL FLOWS, FINANCIAL INSTITUTIONS, FINANCIAL MANAGEMENT, FINANCIAL MARKETS, FINANCIAL SECTOR DEVELOPMENT, FINANCIAL STABILITY, FINANCIAL SYSTEM, FINANCIAL SYSTEMS, FINANCING SOURCES, FISCAL DEFICIT, FISCAL DEFICITS, FISCAL POLICIES, FLEXIBLE EXCHANGE RATE, FOREIGN BANK, FOREIGN BANKS, FOREIGN CURRENCIES, FOREIGN CURRENCY, FOREIGN DEBT, FOREIGN EXCHANGE, FOREIGN EXCHANGE RESERVE, FOREIGN INVESTORS, GOVERNMENT FINANCING, GOVERNMENT SPENDING, GROSS DOMESTIC PRODUCT, HIGH-YIELD BOND, HOLDING, HOLDINGS, HOST COUNTRIES, HOUSEHOLD INCOMES, HOUSEHOLDS, HOUSING, HUMAN CAPITAL, INFLATION, INFLATIONS, INSOLVENCY REGIME, INSURANCE, INSURANCE COMPANIES, INSURANCE MARKETS, INTEREST EXPENDITURES, INTEREST RATE, INTEREST RATES, INTERNATIONAL BANK, INTERNATIONAL BOND, INTERNATIONAL BOND MARKETS, INTERNATIONAL CAPITAL, INTERNATIONAL CAPITAL MARKETS, INTERNATIONAL FINANCE, INTERNATIONAL FINANCIAL MARKETS, INTERNATIONAL INTEREST, INTERNATIONAL INTEREST PAYMENT, INTERNATIONAL SETTLEMENTS, INVESTMENT CLIMATE, INVESTMENT DECISIONS, ISSUANCE, JOB CREATION, LABOR COSTS, LABOR FORCE PARTICIPATION, LABOR MARKET, LABOR MARKETS, LEGAL FRAMEWORK, LEGAL FRAMEWORKS, LEGAL SYSTEM, LEGISLATIVE FRAMEWORKS, LIQUIDITY, LIQUIDITY RATIO, LIVING STANDARDS, LOAN, LOAN-TO-DEPOSIT RATIOS, LOCAL CURRENCY, MACROECONOMIC POLICIES, MACROECONOMICS, MARKET CONDITIONS, MARKET CONFIDENCE, MARKET REFORMS, MARKET SHARE, MATURITIES, MIGRATION, MINIMUM WAGE, MINISTRIES OF FINANCE, MINORITY INVESTORS, MONETARY POLICIES, MONETARY POLICY, MONEY SUPPLY, NATIONAL BANKS, NATURAL DISASTERS, NEW MARKETS, NON-PERFORMING LOANS, NONPERFORMING LOANS, NPL, OIL PRICES, PAYMENT OBLIGATIONS, PENSION, POLITICAL UNCERTAINTY, PORTFOLIO, PORTFOLIO INVESTMENT, PORTFOLIO QUALITY, PORTFOLIOS, PRIVATE EQUITY, PRIVATE INVESTMENTS, PRIVATIZATION, PRODUCTION CAPACITIES, PRODUCTIVE INVESTMENT, PRODUCTIVITY, PUBLIC DEBT, PUBLIC EXPENDITURES, PUBLIC FINANCE, PUBLIC FINANCES, PUBLIC INVESTMENT, PUBLIC INVESTMENTS, PUBLIC SPENDING, RATES OF RETURN, REAL INTEREST, REAL INTEREST RATE, REAL SECTOR, RECESSION, REGULATORY FRAMEWORKS, REMITTANCE, REMITTANCES, RESERVE, RESERVE ASSETS, RESERVE REQUIREMENT, RESERVES, RETURN, RETURN ON ASSETS, RETURNS, RISK MANAGEMENT, RISK PROFILES, SAVINGS, SECURITIES, SHORT-TERM DEBT, SUBSIDIARIES, SUBSIDIARY, SUPERVISORY AUTHORITIES, SURCHARGES, TAX, TAX LAWS, TELECOMMUNICATIONS, TRADE BALANCE, TRADING, TRANSPORT, UNEMPLOYMENT, VALUATIONS, WAGES,
Online Access:	http://documents.worldbank.org/curated/en/2015/01/23837882/coping-floods-strengthening-growth https://hdl.handle.net/10986/21314
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