Southeastern Europe & Mediterranean Emerging Market Economies: Bi-Weekly Report 7 - 20 April 2026

NORTH MACEDONIA
Elevated global energy prices amid ongoing tensions in the Middle East, together with strong domestic demand, are expected to place further pressure on external balances this year 
Financing the increased current account deficit should continue to strain FX reserve accumulation, albeit from a relatively comfortable base
In this context, the NBRNM’s cautious stance is a sine qua non condition for the credibility of the MKD’s peg to the EUR

SERBIA
Amid elevated global energy prices due to the Middle East conflict, headline inflation picked up modestly in March
Energy price pressures and second-round effects, alongside EXPO-2027 demand pressures, to keep inflation elevated through mid-2027
With inflation risks rising, Serbia’s central bank is expected to remain cautious in the period ahead


ALBANIA
Due to its limited dependence on energy imports, Albania is anticipated to be one of the regional economies least impacted by spillovers from the Middle East crisis
GDP growth in Albania is projected to reach 3.5% in FY:26, remaining above that of regional peers 

APPENDIX:
DETAILED MACROECONOMIC DATA
REGIONAL SNAPSHOT: 
        MACROECONOMIC INDICATORS