Skopje, 19 July 2023 (MIA) - After the global economic crisis, the process of income convergence in the Western Balkans decelerated, mostly due to the structural obstacles related to fundamental growth factors- human capital, physical capital and productivity, the National Bank Governor Anita Angelovska-Bezhoska said Wednesday addressing the 9th European Central Bank (ECB) conference titled “Changing geopolitical landscape-economic implications for central, eastern and south-eastern Europe (CESEE),” opened by the President of the ECB, Christine Lagarde.

It was high-profile event attended by the ECB heads, as well as the governors of the CESEE central banks, the National Bank announced in a press release.

“The simulations show that if we continue at the same relative growth rate as before, it will take us around 40 years to reach the average income in EU. The risk of geoeconomic fragmentation, if not properly monitored, may further slow convergence. Small and open economies such as ours, that need to overcome structural obstacles for growth, require stronger global integration, not disintegration”, noted the Governor.

She also pointed to certain analyses, which show that the higher integration in global value chains may contribute to higher level of gross domestic product by 3 percent to 10 percent in the Western Balkans. ssh/ik/

Photo: National Bank