World Bank forecasts 2.4 percent growth for Bosnia in 2026, citing regulatory obstacles and regional lags

However, these figures reflect downward revisions, with growth forecasts for all three years from 2026 to 2028 lowered by 0.1 percentage points compared to the World Bank's spring report. Historically, the country's economy grew by 2 percent in 2023 before accelerating to 3.2 percent in 2024 and subsequently slowing in 2025.

Across the six Western Balkan economies—comprising Albania, Bosnia and Herzegovina, Montenegro, Kosovo, North Macedonia, and Serbia—average growth is expected to climb from 2.6 percent in 2025 to 3.1 percent in 2026, driven primarily by consumption and investment. Regional activity is projected to strengthen further to 3.4 percent in both 2027 and 2028, demonstrating resilience to external shocks and continued economic convergence with the European Union despite geopolitical uncertainties and sluggish growth among key trading partners.

Despite this resilience, World Bank Western Balkans Director Xiaoqing Yu warned that adaptability alone is insufficient for long-term development or convergence with EU income levels.

"Jobs are created by dynamic private sectors, and the next phase of growth requires efficient, predictable regulations and the removal of trade barriers, not only at borders but also behind them," Yu stated, highlighting that high trade costs and complex regulatory procedures remain major hurdles to business competitiveness and quality job creation across the region.

Comparing individual country projections for 2026, Kosovo leads the region with a forecast growth rate of 3.6 percent, followed by Albania at 3.4 percent, Montenegro at 3.3 percent, North Macedonia at 3.2 percent, and Serbia at 3.1 percent, leaving Bosnia and Herzegovina at the bottom of the regional rankings with its 2.4 percent projection.

Looking ahead to 2027, Kosovo is again projected to record the highest growth at 3.8 percent, followed by Serbia at 3.7 percent, Albania at 3.6 percent, Montenegro and North Macedonia at 3.0 percent each, and Bosnia and Herzegovina at 2.9 percent. By 2028, growth across the six economies is forecast at 3.9 percent for Kosovo, 3.7 percent for Albania, 3.5 percent for Serbia, 3.1 percent for both Bosnia and Herzegovina and Montenegro, and 3.0 percent for North Macedonia.