IMF: Lack of public infrastructure in Western Balkans obstacle to faster growth
– Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro and Serbia have insufficiently developed transport, energy and telecommunications networks compared to the EU average. The Western Balkans region lags behind the European average when it comes to supporting economic development with adequate infrastructure – the report says.
As said, better transport, energy and telecommunications networks would help the Western Balkans countries to raise productivity, achieve better integration into the global trade flows and make the region more attractive for foreign investments.
The analysis shows that regionally coordinated intensive activities in upgrading the public infrastructure, combined with better project management, might considerably increase per capita income.
– A long-term increase of real per capita GDP might be three to four percentage points – the IMF says.
The high level of public debt and the high budget deficit in most Western Balkans countries, but also poor public investment management, are cited as obstacles to increasing the public investments.
The IMF assesses that the Western Balkans countries need to invest in modernizing the key traffic routes and in the energy and the TC infrastructure.
They also recommend an enhancement of capacities for planning, selecting and carrying out infrastructural projects, in order to secure the optimal usage of available resources and increasing the ability of the region to absorb available financing by donors.
A better regional coordination of investment projects is also needed, and the countries should also consider tax exemptions, in order to increase the collection of revenues.
It is also assessed that donation, multilateral and bilateral financing under concessional conditions will be dominant, especially in countries with a high public debt.
– The countries should not jeopardize their general macroeconomic stability with overly ambitious or poorly conducted public infrastructural projects. Compromises between the economic growth, inflation and deficit of the balance of current transactions should be the key element of any discussion about the policy of improving public infrastructure in the region – says the IMF analysis.
Most Important News
11.03.2024. | Healthcare
Are Marketing Experts Reading Our Minds? – eKapija Investigates: What Neuromarketing Is and How Much It Is Used in Serbia
11.03.2024. | Construction, Transport
Tender for Continuation of Construction of Patrijarha Pavla Blvd Stopped – Contractors Demanding Price Higher Than Estimated
11.03.2024. | Construction, Transport
11.03.2024. | Construction, IT, Telecommunications
Auction for 5G Network by End-Year, Minister Announces
11.03.2024. | Construction, IT, Telecommunications
28.03.2024. | Construction
Beginning of Construction of First “Green Dam” in Serbia Which Will Supply 500,000 People with Drinking Water
28.03.2024. | Construction
17.01.2024. | Industry, Healthcare
Ceremony of Opening of Centers of Excellence in Kragujevac Planned for Spring – Official Beginning of Operations in June
17.01.2024. | Industry, Healthcare
27.03.2024. | Industry, Transport, Finance
City to Waive Over 30 Zemun and Palilula Bus Lines to Private Transporters – Draft Public-Private Partnership for 10-Year Period Ready, Job Worth Half a Billion Euros
27.03.2024. | Industry, Transport, Finance