Poor economic situation and unemployment are the main problems in the Western Balkan countries

The economic situation in the Western Balkan countries has worsened over the past few months, meaning that the recovery that began in 2013 was weak, according to an analysis by the European Commission, as reported by the Bosnian news agency Patria.

Serbia and Albania have entered a recession. The only significant growth in real gross domestic product (GDP) was recorded in Macedonia.

Apart from Macedonia, GDP growth was also recorded in Kosovo.

On the other hand, the analysis shows that the devastating floods in May in Serbia and Bosnia and Herzegovina had consequences for infrastructure and caused huge losses in production, especially in the mining and energy sectors.

The halt in growth in Montenegro and Albania is a consequence of a significant decline in industrial production, while in Serbia the situation worsened due to a lack of investment.

Although a slight decline in the unemployment rate is recorded, it is still quite high in the region. In Kosovo 30 percent, Macedonia 28 percent, BiH 26.8 percent, Serbia over 20 percent, and Albania 18 percent. Unemployment is pronounced among young people, and structural measures in the labor market and production are needed.

The main challenge for most Western Balkan countries is low import coverage by exports, a worsening of the current account deficit situation, especially in the first half of 2014. This deficit is lowest in Macedonia - 1.2% of GDP, while in other countries of the region it ranges from 7.0% - Bosnia and Herzegovina, 11.6 - Albania, and 15.2 - Montenegro.