Round Table "Macroeconomic stability and improvement of the Western Balkan countries

The Round Table "Macroeconomic stability and improvement of the Western Balkan countries' competitiveness", organized by the Department of Macroeconomics of the Institute of Economic Sciences (IES) in Belgrade, was held on Wednesday, September 22, 2021. Over 40 participants from Serbia and the countries of the region attended this scientific gathering, and in addition to IES researchers, active participation in the work of the Round Table was taken by representatives of other relevant institutions from Serbia, Austria, Northern Macedonia, and Montenegro.

The aim of the Round Table was to exchange ideas and conceptualize adequate guidelines for economic policy makers, in order to strengthen macroeconomic stability and improve the competitiveness of the Western Balkan countries as key factors of more dynamic economic growth and faster economic recovery from the effects of the crisis caused by the COVID-19 pandemic.

Through the presentation and analysis of macroeconomic trends in the Western Balkan countries and during the discussion that followed, as key challenges were identified growing public debt, decline in GDP, decrease in FDI inflows, decline in industrial production, reduction of private consumption, decline in foreign trade, unemployment growth (especially among the youth) and growing inflationary pressures. When it comes to projections, most participants estimate that the economic recovery of the Western Balkan countries can be expected in the coming period, and that it will be reflected in economic growth primarily based on an increase in private consumption, growth of FDI inflows, and recovery of crisis-affected sectors, such as tourism. Participants had divided opinions on rising prices in the region - while some believe inflation is a "temporary phenomenon", others consider that inflation rates, especially in the past few months are worrying, and that the price growth trend will continue in the coming period.

According to the opinion of the participants of the Round Table, the speed of economic recovery from the consequences of the crisis will, to a large extent, depend on the duration of the pandemic, world economic trends, as well as the way of conducting economic policy in some Western Balkan countries.