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
IMF Staff Concludes a Remote Staff Visit to Albania
October 12, 2021
Albania’s economy has shown considerable resilience in the face of the 2019 earthquake and the pandemic. After a terrible 2020, activity is rebounding strongly. Policies have played a critical role in preserving lives and livelihoods and thereby paving the way for the recovery.
IMF Staff Completes Virtual Staff Visit to Kosovo
June 18, 2021
An International Monetary Fund (IMF) mission, led by Gabriel Di Bella, conducted a virtual staff visit to Kosovo during June 7-17, to discuss recent economic developments and policies. Mr. Di Bella issued the following statement.
IMF Staff Concludes a Remote Staff Visit to Albania
June 11, 2021
An International Monetary Fund (IMF) team, led by Ms. Yan Sun, conducted a staff visit remotely with Albania during June 7-11. At the conclusion of the mission, Ms. Sun issued the following statement. Download PDF (in Albanian).
Montenegro: Statement on the legislative proposal for untargeted borrower support measures
May 26, 2021
Stephanie Eble, the International Monetary Fund (IMF) Resident Representative to the Regional Office for the Western Balkans, issued the following statement on May 26, 2021.
IMF Staff Concludes Virtual Visit to North Macedonia
May 19, 2021
An International Monetary Fund (IMF) mission, led by Bergljot Barkbu, conducted a virtual staff visit with the authorities of North Macedonia during May 6-17, to discuss recent economic developments and policies. Download PDF (in Macedonian)
IMF Staff to Conduct Technical Staff Visit to Albania
February 26, 2021
An IMF team led by Yan Sun will conduct a virtual staff visit to Albania during March 3-9, 2021. The technical discussions with the authorities and other counterparts are expected to cover economic and financial developments in 2020, prospects for 2021, and the status of structural reforms. Download PDF
IMF Executive Board Concludes 2020 Article IV Consultation with the Republic of Kosovo
February 17, 2021
Economic activity is forecast to rebound by 4.5 percent in 2021 supported by continued fiscal stimulus, and the projected gradual relaxation of containment measures. The outlook remains subject to large uncertainty, and depends on the evolution of the pandemic, the speed of vaccinations, and political developments. Read more
February 17, 2021
Kosovo has been hit hard by the COVID-19 pandemic. Despite policy support, economic activity is estimated to have fallen 6 percent in 2020 on account of the combined effect of strict domestic containment measures and international travel restrictions. Read more
IMF Executive Board concludes 2020 first Post-Program Monitoring with Albania
November 30, 2020
Albania has benefited from the IMF emergency financial assistance (around US$190.5 million) disbursed under the Rapid Financing Instrument in April 2020, which allowed Albania to meet urgent balance of payments needs stemming from the aftermath of the November 2019 earthquake and the outbreak of the COVID-19 pandemic. Albania’s capacity to repay the Fund is adequate, but risks have risen in light of the shocks. Read more
November 30, 2020
Albania continues to be severely affected by the aftermath of the November 2019 earthquake and the COVID-19 pandemic. The authorities responded promptly to the shocks, and macroeconomic and financial stability have so far been maintained. Read the report
IMF Staff Concludes Virtual Visit to North Macedonia
November 2020
An International Monetary Fund (IMF) mission, led by Bergljot Barkbu, conducted a virtual staff visit with the authorities of North Macedonia during November 9-18, to discuss recent economic and financial sector developments, the 2021 budget and the outlook. Read the statement
Kosovo: Staff Concluding Statement of the 2020 Article IV Mission
October 8, 2020
An International Monetary Fund (IMF) mission, led by Mr. Gabriel Di Bella, conducted a virtual visit during September 23-October 7 in the context of the 2020 Article IV consultations. Read the concluding statement here
Albania: Staff Concluding Statement of the First Post-Program Monitoring Mission
September 28, 2020
The November 2019 earthquake and the COVID-19 pandemic have taken a big toll on the lives of Albanian people and the economy. Thanks to adept policy management and globally accommodative financial conditions, macroeconomic and financial stability have been maintained . Albania’s capacity to repay the Fund is broadly adequate, but risks have risen in light of the shocks.
The IMF says we will have an even deeper recession of 5.5% this year
September 21, 2020
The recession as a result of the severe consequences of the pandemic on the economy is completely inevitable this year, both globally and in the country, but the latest forecasts of the International Monetary Fund (IMF) instill even greater pessimism. Despite the initially expected drop in gross domestic product (GDP) of 4%, the IMF Regional Resident Representative for the Western Balkans, Stephanie Eble, in her first interview with Kapital revealed that the IMF forecasts that the decline in economic activity will reach 5.5%.
Republic of Kosovo: Financial Sector Stability Review
July 07, 2020
The FSSR mission team conducted a diagnostic review of CBK governance and of the financial system, undertook a stocktaking of the implementation of recommendations from the 2012 Financial Sector Assessment Program (FSAP) and MCM TA, and proposed a TA Roadmap to support the efforts of the authorities to address key gaps and vulnerabilities. The IMF Statistics Department (STA) supported the mission with an assessment of the compilation of financial soundness indicators (FSIs), monetary and financial statistics, and balance sheet matrices (Annex I).
Combating the Impact of COVID-19 in Montenegro
July 02, 2020
IMF Staff Concludes a Remote Staff Visit to Albania
July 01, 2020
Due to the fallout of the earthquake and the COVID-19 pandemic, Albania’s economy is expected to contract sharply in 2020 and rebound in 2021. But uncertainty is high.
Temporary, targeted, and transparent support for people and firms hurt by the shocks is warranted and needs to be embedded in a credible medium-term fiscal framework.
Once the effects of the shocks subside, it will be critical to resume revenue-based fiscal consolidation and put public debt on a sustained downward path to rebuild room for fiscal policy maneuver.
June 25, 2020
The COVID-19 pandemic will hit Montenegro hard, as tourism is a key industry. Fiscal space has eroded in recent years due to large public capital outlays, and the COVID-19 crisis is creating new budgetary strains as health spending and other expenditures rise, while the economic contraction lowers revenues.
Research and Papers
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
October 12, 2021
June 11, 2021
November 30, 2020
November 30, 2020
September 28, 2020
July 1, 2020
April 17, 2020
April 10, 2020
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
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
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
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
November 2020
The coronavirus disease (COVID-19) pandemic is exacting a severe social and economic toll on Europe. By mid-October 2020, more than 240,000 people have lost their lives in Europe, while nearly 7 million people are estimated to have been infected with the virus. Early spring lockdowns, voluntary social distancing, and associated disruptions in supply chains and lower demand led to a record collapse in economic activity. Real GDP fell by about 40 percent in the second quarter of 2020 (annualized quarter-over-quarter), with deeper contraction in advanced Europe, where the virus spread first, relative to emerging Europe.
The pandemic’s toll on Europe could have been much larger without the unprecedentedly strong and multifaceted response to the crisis. Across Europe, governments deployed large fiscal packages to support households and firms, with job retention programs preserving at least 54 million jobs. Central banks embarked on substantial monetary easing through both conventional and unconventional means, to support the flow of credit and prevent financial market disruptions. Macroprudential measures were also eased to cushion the impact of the crisis on both banks and borrowers. The European Union relaxed existing rules to a
ccommodate increasing fiscal deficits and support to households and firms. In a strong display of solidarity, it is also mobilizing supranational resources to finance new anti-pandemic facilities and complement national fiscal policies.