Bi-Weekly Report 31 March – 13 April 2020

SERBIA

Economic activity strengthened in H2:19, due to one-offs, bringing FY:19 GDP growth to a robust 4.2%

GDP is expected to contract this year by 3.3%, due to COVID- 19 related disruptions in the supply chain and the sharp slowdown in external demand, especially from the EU

NORTH MACEDONIA

GDP continued to expand at a solid pace in Q4:19 (up 3.4% y-o-y), driven by investment

GDP is set to drop abruptly in the aftermath of the COVID-19 outbreak, with increased uncertainty, quarantine measures and lower remittances from migrants taking their toll on economic activity along with the contraction in external demand

IMF lends EUR 176.5mn to North Macedonia to ease COVID- 19 blow

ALBANIA

The EU opens accession negotiations with Albania

GDP growth eased to 2.2% in FY:19 from a post-GFC high of 4.1% in FY:18, due to base effects

A significant contraction in GDP in FY:20 is unavoidable, with deteriorating economic sentiment weighing on business activity and external demand falling sharply (50% of Albania’s exports is channeled to Italy)

IMF approves EUR 173.7mn in financial support to Albania