Review of 2024 / Construction Industy and Economic Insights into the Balkans: A Comprehensive Review of Regional Trends

The Balkans region, made up of different countries with their own challenges and opportunities, is going through important changes. This review explains the economic progress and future plans of key Balkan nations in clear and simple terms.

EU Member States

Croatia - Focus on Energy Renovations

• Economic Growth: Croatia’s economy grew by 3.2% in 2024, driven by tourism and increased EU funding for infrastructure.
• Jobs and Employment: Unemployment fell to 4.7% in 2024, reflecting strong job creation in the tourism and construction sectors.
• Inflation and Finances: Inflation eased to 2.8% in 2024 due to stable energy prices and improved supply chains.
• Construction Sector: Croatia aims to renovate at least 180,000 square meters of multi-apartment and 288,000 square meters of public buildings by 2026. The government plans to invest €2.3 billion in energy renovations by 2030, targeting nearly zero-energy buildings. Additionally, public buildings must meet annual energy savings and renovation targets as part of the Energy Efficiency Directive.

Romania - Uncertainty Due to the Elections

• Economic Growth: Romania’s economy expanded by 3.6% in 2024, supported by growing exports and domestic consumption.
• Jobs and Employment: The unemployment rate declined to 5.2%, reflecting robust economic activity.
• Public Debt and Finances: Public debt remained steady at 51.0% of GDP, with fiscal reforms enhancing revenue collection.
• Construction Sector: Residential and transport infrastructure developments continued to grow, particularly in urban areas.
• Green Goals: Romania strengthened its renewable energy targets, aiming for 40% green energy by 2030.
• 2024 Elections: Romania's December 2024 elections resulted in a fractured parliament, with no single party gaining a majority, leading to the formation of a pro-European coalition government. The presidential election, initially held on December 2, was annulled by the Constitutional Court on December 6 due to allegations of Russian interference. These events have sparked significant political debates about Romania's democratic integrity and external influence.

Bulgaria - Strengthening the Business Environment

• Economic Growth: Bulgaria saw economic growth of 2.9% in 2024, bolstered by foreign investment and export growth.
• Jobs and Employment: Unemployment decreased slightly to 4.5%, supported by job creation in manufacturing and IT.
• Public Debt and Finances: Debt remained low at 20.8% of GDP, maintaining Bulgaria’s position as one of the least indebted EU countries.
• Construction Sector: Key investments in housing and renewable energy infrastructure continued to support the sector.
• Business Environment: Regulatory improvements aimed at boosting ease of doing business began showing results in 2024.
• 2024 Elections: Bulgaria’s presidential elections in 2024 focused on economic growth and anti-corruption reforms.

Non-EU Member States

Albania - Infrastructure and Tourism Growth

• Economic Growth: Albania’s economy grew by 3.5% in 2024, supported by tourism and infrastructure projects.
• Jobs and Employment: Unemployment dropped to 10.3%, though youth unemployment remains a challenge.
• Public Debt and Finances: Public debt decreased to 61.5% of GDP, reflecting fiscal consolidation efforts.
• Construction Sector: Urban redevelopment and transport projects, including highways and airports, boosted the sector.

Bosnia and Herzegovina - Structural Challenges and EU Aspirations

• Economic Growth: GDP growth slowed to 2.4% in 2024, reflecting ongoing structural challenges.
• Jobs and Employment: The unemployment rate remained high at 15.0%, though slight improvements were recorded.
• Public Debt and Finances: Debt stabilized at 37.2% of GDP, with modest progress in fiscal reforms.
• Construction Sector: Housing and public infrastructure projects continued, but faced delays due to bureaucratic hurdles.
• EU Membership: Efforts toward EU membership gained momentum, with reforms targeting governance and economic policies.

North Macedonia - Focus on Industrial Growth and Green Goals

• Economic Growth: Growth reached 2.8% in 2024, driven by industrial expansion and trade.
• Jobs and Employment: Unemployment fell to 13.8%, supported by job creation in manufacturing and services.
• Public Debt and Finances: Public debt remained stable at 49.5% of GDP.
• Construction Sector: Continued investment in residential and industrial development boosted urbanization.
• Green Goals: Progress was made on renewable energy projects, aligning with the country’s net-zero goals by 2070.

Montenegro - Tourism and Renewable Energy

• Economic Growth: Montenegro’s economy expanded by 4.2% in 2024, largely due to growth in tourism and renewable energy.
• Jobs and Employment: The unemployment rate declined to 15.8%, with gains in tourism-related jobs.
• Public Debt and Finances: Public debt reduced to 63.7% of GDP, reflecting improved fiscal discipline.
• Construction Sector: Tourism-driven projects, including luxury resorts and transport upgrades, remained key.

Kosovo - Infrastructure and Connectivity

• Economic Growth: Kosovo recorded 3.7% GDP growth in 2024, driven by remittances and infrastructure investment.
• Jobs and Employment: Unemployment remained high at 24.0%, emphasizing the need for workforce reforms.
• Public Debt and Finances: Debt levels stayed low, allowing for continued investment in infrastructure.
• Construction Sector: Road and energy projects continued to dominate the construction landscape, improving connectivity.

Serbia - Expo 2027 & Regional Integration Through Infrastructure

• Economic Growth: Serbia’s economy grew by 2.5% in 2024, with support from agriculture and IT sectors.
• Jobs and Employment: Inflation fell to 4.3%, aiding consumer confidence and economic stability.
• Public Debt and Finances: Public debt stabilized at 55.4% of GDP, with prudent fiscal management.
• Construction Sector: Major infrastructure projects, such as highways and railways, remained pivotal for regional integration. The construction of the 2024 Belgrade Expo site was a major highlight, spanning 200 hectares and costing over €600 million, creating thousands of jobs and boosting the local economy.

Regional Dynamics and Outlook

The Balkan economies share common opportunities and challenges, including:

1. Economic Growth: 2024 saw steady growth across the region, with tourism and infrastructure investment driving development.
2. Jobs and Employment: High unemployment persists, particularly among youth, requiring targeted job creation and training initiatives.
3. Inflation Management: Inflation eased in most countries, supported by central bank measures and improved global conditions.
4. Construction Projects: Investments in transport, housing, and renewable energy continued to support economic growth.
5. Green Goals: Countries advanced their sustainability goals, focusing on renewable energy and emission reductions.
6. EU Membership: Aspirations for EU integration remained a driving force for reforms and international cooperation.

Sources: https://cebr.com/

https://tradingeconomics.com/

https://www.inparkmagazine.com/expo-2027-belgrade-dusan-borovcanin/

https://www.instagram.com/schengenvisainfo1/p/C4_H_t1Iwhn/

https://www.flickr.com/photos/paulkagame/6859575382

https://commons.wikimedia.org/wiki/File:Balkans_regions_map.png

https://picryl.com/media/construction-welding-industry-industry-craft-c72d4c