political crisis

EBRD lowers economic growth forecast for Western Balkans, cites political instability in Serbia

The European Bank for Reconstruction and Development (EBRD) has lowered its economic growth forecast for the Western Balkans in 2025 from 3.6% to 3.2%, citing political instability in Serbia and weaker economic performance in developed European countries as key reasons for the downgraded outlook. For 2026, a slight recovery in regional growth is expected, at 3.4%. For Serbia, the forecast for this year is a growth of 3.5%, which is 0.5% lower than the previous estimate. EBRD anticipates that Serbia…