Mission
The Regional Office for the Western Balkans, located in Vienna, Austria, was created to strengthen the IMF’s relationship with Albania, Kosovo, Montenegro, and Republic of North Macedonia. The objective of the office is to maintain a close engagement with the four countries as well as with donors, international institutions, including the World Bank, and the Austrian government, an important trade and development partner of the Western Balkan region.
Its main tasks include:• Engaging with policymakers and other interlocutors on economic policies; as well as fostering a dialogue on global economic issues;
• Supporting IMF operations in the Western Balkans, including policy advice, lending arrangements, technical assistance, and recruitment efforts;
• Helping to coordinate communication and outreach activities across the region.
News
Inflation Dynamics in the Western Balkans
March 3, 2023
After trailing Euro Area inflation closely in the recent past, inflation in the Western Balkans has accelerated faster since early 2022 on the back of the shocks to global commodity prices, strong recovery from the pandemic, and lingering supply bottlenecks.
January 27, 2023
The increase in energy and food prices after Russia’s war in Ukraine is weighing on private demand, activity, and inflation. Real GDP growth has decelerated to 2–3 percent in 2022, after recovering by 10.7 percent in 2021, and inflation increased to more than 11 percent.
IMF Completes Staff Visit to Montenegro
December 12, 2022
An International Monetary Fund (IMF) team led by Mr. Srikant Seshadri conducted a staff visit to Montenegro from December 5-12, 2022. At the end of the visit, Mr. Seshadri issued the following statement.
December 9, 2022
Past efforts to build policy buffers and a broadly appropriate macroeconomic policy mix during 2020–21 have helped Albania withstand the impact of consecutive shocks since 2019.
November 29, 2022
Given high dependence on energy imports, the external financing need has increased, while at the same time, global financial conditions have tightened, increasing the cost of market financing.
November 22, 2022
The IMF Executive Board approved November 21 a two-year arrangement for North Macedonia under the Precautionary and Liquidity Line (PLL) in the amount of SDR 406.87 million (about €530 million).
Kosovo: Staff Concluding Statement of the 2022 Article IV Mission
November 4, 2022
An International Monetary Fund (IMF) mission, led by Mr. Gabriel Di Bella, visited Pristina during October 25-November 4 in the context of the 2022 Article IV consultations.
Albania: Staff Concluding Statement of the 2022 Article IV Mission
October 10, 2022
The Albanian economy has weathered multiple shocks since 2019 relatively well. Although Albania’s direct exposures to Russia’s war in Ukraine are limited, with twin deficits and high government debt, Albania now faces challenges stemming from soaring international food and energy prices, tighter global financial conditions which are likely to persist, and the economic slowdown in Europe.
October 10, 2022
IMF Team and Authorities of the Republic of North Macedonia Reach Staff-Level Agreement on a 24-Month €530 million Arrangement under the Precautionary and Liquidity Line (PLL).
Statement of IMF Deputy Managing Director Li at the Conclusion of his visit to Kosovo
September 22, 2022
Mr. Bo Li, Deputy Managing Director of the International Monetary Fund (IMF), issued the following statement in Pristina today at the conclusion of his visit to Kosovo.
Statement of IMF Deputy Managing Director Li at the Conclusion of his visit to Albania
September 21, 2022
Mr. Bo Li, Deputy Managing Director of the International Monetary Fund (IMF), issued the following statement in Tirana today at the conclusion of his visit to Albania.
IMF Completes Staff Visit to Montenegro
July 28, 2022
An International Monetary Fund (IMF) team led by Mr. Srikant Seshadri conducted a staff visit to Montenegro from July 18-27, 2022.
IMF Staff Concludes Visit to Kosovo
May 26, 2022
An International Monetary Fund (IMF) mission, led by Mr. Gabriel Di Bella, conducted a staff visit to Kosovo during May 10 – 13 and May 20, to discuss recent economic developments, the outlook, and policies.
IMF Staff Concludes a Staff Visit to Albania
May 19, 2022
An International Monetary Fund (IMF) team, led by Ms. Yan Sun, conducted a staff visit in Albania during May 12–19.
Albania: Enhancing Tax Administration Capacity During Challenging Times
April 22, 2022
The purpose of this mission was to assist the General Directorate of Taxes (GDT) in taking stock of reform efforts and provide advice on future efforts. In recent years, the GDT made solid progress in realizing its reform agenda.
April 20, 2022
The International Monetary Fund’s (IMF) Executive Board met on April 15 for an informal discussion of the request by the authorities of the Republic of North Macedonia for a two-year Precautionary and Liquidity Line (PLL) with the IMF.
February 24, 2022
COVID-19 hit the economy hard, but a strong recovery is underway. Public debt, already elevated before the pandemic, has increased further.
February 16, 2022
The economy is rebounding. After a 6 percent drop in 2020, real GDP is projected to grow at 4 percent both in 2021 and 2022, reflecting improved mobility, a return of the diaspora, and continued policy support. With uncertainty remaining high, including about the course of the pandemic, policies need to be kept flexible.
Republic of North Macedonia: Selected Issues
February 16, 2022
This Selected Issues paper on the Republic of North Macedonia was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country.
Republic of Kosovo: 2021 Article IV Consultation-Press Release and Staff Report
January 12, 2022
After contracting more than 5 percent in 2020, Kosovo’s economy is projected to have recovered by 7.5 percent in 2021, thanks to mobility normalization, extraordinary diaspora inflows, and strengthened confidence.
IMF Executive Board Concludes 2021 Article IV Consultation with the Republic of Kosovo
January 11, 2022
The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Kosovo and considered and endorsed the staff appraisal without a meeting.
Research and Papers
Inflation Dynamics in the Western Balkans
March 3, 2023
After trailing Euro Area inflation closely in the recent past, inflation in the Western Balkans has accelerated faster since early 2022 on the back of the shocks to global commodity prices, strong recovery from the pandemic, and lingering supply bottlenecks. Learn more
The Future of PPPs in the Western Balkans
February 10, 2023
Public-Private Partnerships (PPPs) are increasingly an important vehicle for several Western Balkan countries to increase investment to reduce their infrastructure gaps. While there are benefits to well-designed and implemented PPPs, they also carry a potential for large fiscal risks and increased costs if not managed well. Learn more
Republic of Kosovo: Selected Issues
January 27, 2023
This Selected Issues paper on Kosovo was prepared by a staff team of the International
Monetary Fund as background documentation for the periodic consultation with the
member country. It is based on the information available at the time it was completed on
December 20, 2022. Learn more
Albania: Adopting to Climate Change
December 9, 2022
Albania has been struck by numerous, costly natural disasters, with increasing frequency in its recent history due to climate change. Over the last two decades, the frequency of natural disasters has increased, with floods and forest fires becoming more frequent as the impact of climate change is being increasingly felt. Learn more
Infrastructure in Central, Eastern, and Southeastern Europe : Benchmarking, Macroeconomic Impact, and Policy Issues
September 28, 2020
CESEE countries lag in terms of infrastructure compared to the EU15, and deficient infrastructure is often cited as a constraint to growth and convergence. Investing in infrastructure is therefore an important long-standing policy issue for the region. In the context of the Covid-19 pandemic, infrastructure investment has also gained some ground as economies look to support activity in the recovery phase once the virus has been contained. Learn more
Improving Fiscal Transparency to Raise Government Efficiency and Reduce Corruption Vulnerabilities in Central, Eastern, and Southeastern Europe
May 11, 2020
This departmental paper investigates how countries in Central, Eastern, and Southeastern Europe (CESEE) can improve fiscal transparency, thereby raising government efficiency and reducing corruption vulnerabilities.
North Macedonia—Income Convergence and EU integration
January 27, 2020
Although growth has been solid in the past two decades, it has not been enough to substantially narrow North Macedonia’s income gap with the European Union (EU). Based on the experience of other countries, joining the EU, which North Macedonia is aspiring to, has the potential to strengthen growth prospects. Read more
Lifting Growth in the Western Balkans : The Role of Global Value Chains and Services Exports
November 18, 2019
This paper focuses on how the countries in the Western Balkans could lift exports through stronger integration with global value chains (GVCs) and broadening of services exports. The experience of countries that joined the European Union in or after 2004 shows that participation in GVCs can help small economies accelerate export and income growth. Read more
Demographic Headwinds in Central and Eastern Europe
July 15, 2019
populations of Central and Eastern European (CESEE) countries—with the exception of Turkey—are expected to decrease significantly over the next 30 years, driven by low or negative net birth rates and outward migration. These changes will have significant implications for growth, living standards and fiscal sustainability. Read more
Reassessing the Role of State-Owned Enterprises in Central, Eastern and Southeastern Europe
June 18, 2019
The Central, Eastern, and South Eastern European (CESEE) region is ripe for a reassessment of the role of the state in economic activity. The rapid income convergence with Western Europe of the early 2000s was not always equally shared across society, and it has now slowed dramatically in many countries of the region. Read more
Public Infrastructure in the Western Balkans : Opportunities and Challenges
April 17, 2018
An assessment of public infrastructure development in the Western Balkans. The paper quantifies the large gaps across various sectors/dimensions, evaluates current infrastructure plans, and discusses funding options available to countries in the region. Read more
Western Balkans: Increasing Women's Role in the Economy
September 1, 2017
The Western Balkan countries have some of the lowest female labor force participation and employment rates across Europe. Almost two-thirds of working age women in the region are either inactive or unemployed: a huge bite into human capital for a region that endures high emigration and faces declining working age population. Read more
Emigration and Its Economic Impact on Eastern Europe
July 2016
This paper examines the effects of emigration on private sector activity, competitiveness, public finances, and ultimately, growth in Central, Eastern, and Southeastern Europe (CESEE) economies as well as the pace of their income convergence to Western Europe. Read more
Cross-Country Report on Minimum Wages : Selected Issues
June 15, 2016
This paper provides a cross-country report on minimum wages. In the past few years, many countries in Central Eastern and Southeastern Europe (CESEE) have increasingly turned to minimum wage policies. Read more
IMF and the Western Balkans
Albania
Albania: Selected Issues
December 9, 2022
Albania: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Albania
December 9, 2022
Albania: Staff Concluding Statement of the 2022 Article IV Mission
October 10, 2022
Statement of IMF Deputy Managing Director Li at the Conclusion of his visit to Albania
September 21, 2022
IMF Staff Concludes a Staff Visit to Albania
May 19, 2022
Albania: Enhancing Tax Administration Capacity During Challenging Times
April 22, 2022
Albania: Technical Assistance Report-Tax Policy Reform Options for the MTRS
February 17, 2022
Albania: 2021 Article IV Consultation-Press Release
December 7, 2021
Albania: Staff Concluding Statement of the 2021 Article IV Mission
October 12, 2021
IMF Staff Concludes a Remote Staff Visit to Albania
June 11, 2021
IMF Executive Board Concludes 2020 First Post-Program Monitoring with Albania
November 30, 2020
Albania: First Post-Program Monitoring-Press Release; Staff Report; and Statement by the Executive Director for Albania
November 30, 2022
Albania: Staff Concluding Statement of the First Post-Program Monitoring Mission
September 28, 2020
IMF Staff Concludes a Remote Staff Visit to Albania
July 1, 2020
IMF Executive Board Approves US$190.5 Million in Emergency Support to Albania to Combat COVID-19 Pandemic
April 10, 2020
IMF Staff Concludes Additional Talks on 2019 Article IV Consultation with Albania
March 13, 2020
Albania: Staff Concluding Statement of the 2019 Article IV Mission
November 26, 2019
Albania : Technical Assistance Report–Monetary and Financial Statistics and Financial Accounts Mission
October 3, 2019
IMF Executive Board Concludes 2019 Second Post-Program Monitoring for Albania
July 3, 2019
Albania : Second Post-Program Monitoring Discussions-Press Release; and Staff Report
July 3, 2019
IMF to Open New Regional Office for Western Balkans
June 14, 2019
Albania: Staff Concluding Statement of the Second Post-Program Monitoring Mission
May 6, 2019
Albania : Technical Assistance Report-Revenue Administration: Supporting the Delivery of the Reform Agenda
April 2, 2019
IMF Executive Board Concludes 2018 Article IV Consultation with Albania
January 28, 2019
Albania : 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Albania
January 28, 2019
Albania: Staff Concluding Statement of the 2018 Article IV Mission
November 20, 2018
Kosovo
January 27, 2023
January 27, 2023
September 22, 2022
May 26, 2022
January 11, 2022
November 5, 2021
June 18, 2021
October 8, 2020
Republic of Kosovo : Technical Assistance Report-Financial Sector Stability Review
July 7, 2020
May 12, 2020
April 16, 2020
April 10, 2020
November 19, 2019
June 19, 2019
June 14, 2019
December 18, 2018
December 18, 2018
October 30, 2018
June 6, 2018
February 15, 2018
February 5, 2018
February 4, 2018
February 2, 2018
December 13, 2017
September 27, 2017
June 14, 2017
May 11, 2017
March 17, 2017
Montenegro
IMF Completes Staff Visit to Montenegro
December 12, 2022
IMF Completes Staff Visit to Montenegro
July 28, 2022
Montenegro: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Montenegro
February 24, 2022
Montenegro: Staff Concluding Statement of the 2021 Article IV Mission
November 17, 2021
Statement by the IMF Resident Representative to the Regional Office for the Western Balkans
May 26, 2021
Combating the Impact of COVID-19 in Montenegro
July 2, 2020
IMF Executive Board Approves US$ 83.7 Million in Emergency Support to Montenegro to Combat COVID-19 Pandemic
June 24, 2020
IMF Executive Board Concludes 2019 Article IV Consultation with Montenegro
September 10, 2019
Montenegro : 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Montenegro
September 10, 2019
Montenegro : Technical Assistance Report-Report on the Monetary and Financial Statistics Mission
July 30, 2019
North Macedonia
November 29, 2022
November 1, 2022
October 10, 2022
April 20, 2022
February 16, 2022
December 17, 2021
May 19, 2021
November 20, 2020
May 12, 2020
April 21, 2020
April 10, 2020
January 27, 2020
January 27, 2020
January 27, 2020
November 18, 2019
June 14, 2019
January 29, 2019
Former Yugoslav Republic of Macedonia : 2018 Article IV Consultation; Press Release; Staff Report; and Statement by the Executive Director for Former Yugoslav Republic of Macedonia
January 29, 2019
The Former Yugoslav Republic of Macedonia: Staff Concluding Statement of the 2018 Article IV Mission
November 19, 2018
IMF Publishes Fiscal Transparency Evaluation for Macedonia
October 29, 2018
Former Yugoslav Republic of Macedonia : Fiscal Transparency Evaluation
October 29, 2018
Spotlight on the Former Yugoslav Republic of Macedonia: Five Ways to Reform
November 22, 2017
IMF Executive Board Concludes Article IV Consultation with Former Yugoslav Republic of Macedonia
November 22, 2017
Regional Economic Outlook
Europe
October 2022
The war in Ukraine is taking a growing toll on Europe’s economies. The worsening energy crisis has depressed households’ purchasing power and raised firms’ costs, only partly offset by new government support. Central banks in the region and the world are acting more forcefully to bring high and persistent inflation down to targets, and global financial conditions have tightened. European policymakers are facing severe trade-offs and tough policy choices. A tightening macroeconomic policy stance is needed to bring down inflation, while helping vulnerable households and viable firms weather the energy crisis. But policies need to stay nimble and agile and adjust should additional shocks materialize.
April 2022
The Russian invasion of Ukraine created a humanitarian catastrophe. In two months since the invasion, about 5 million people, mostly women and children, have fled Ukraine, and thousands have been wounded or killed. The war will also have severe economic consequences for Europe, having struck when the recovery from the pandemic was still incomplete.
October 2021
An increasingly resilient recovery is taking hold in Europe, buttressed by gradual increases in vaccination rates and mobility. Strongly accommodative macroeconomic policies and COVID-19 support schemes have paved the way for the recovery by helping preserve employment relationships and protecting private sector balance sheets. However, uncertainty remains elevated, not least because of the risk of new infection waves and virus variants amid uneven vaccination rates across countries. It is therefore imperative to continue increasing vaccinations, notably in emerging European economies, and to strongly support international efforts to speed up vaccine access globally.
April 2021
With new waves of COVID-19 infections hitting Europe, the recovery remains halting. However, vaccinations are progressing and thus Europe’s GDP growth is projected to rebound by 4.5 percent in 2021. The main priority is to quickly ramp up the production and administration of vaccines. At the same time, policymakers need to continue providing emergency support to households and firms. And they need to prepare measures to stimulate hiring and investment once the pandemic is under control. Such measures will foster a quicker and fuller recovery, by reducing scarring from unemployment, missed education and training, and low investment.