BAKU, Azerbaijan, October 8. The World Bank’s Fall 2025 Economic Update for Europe and Central Asia identifies promising growth opportunities for the Western Balkans in agribusiness, tourism diversification, light manufacturing, and care services, Trend reports.
According to the report, the region’s agribusiness sector could expand in horticulture, meat and hides, processed fish, organic products, and other value-added goods—provided land reforms are implemented, fragmentation is addressed, and irrigation, transport, and standards and certification systems are strengthened.
Tourism, the report notes, has potential to evolve beyond concentrated, low-value beach destinations into a diversified portfolio including coastal, mountain, cultural, and village tourism. Investment in marinas, boating and diving facilities, nature-based offerings, and improved destination management are key to this transition.
The Western Balkans’ nascent automotive components industry could also benefit from a clear sector vision, creation of industry associations, investment in serviced industrial land and prebuilt factories, and tailored vocational training programs.
Additionally, the report highlights growing demand for care services, including childcare and elderly care, which have largely been provided informally and by women. Expanding the care economy could improve service delivery, create jobs across the skills spectrum, and increase women’s participation in higher-paid, productive roles.
The World Bank stresses that policy action is needed across interconnecting regional infrastructure, trade coordination, regulatory quality, workforce skills, innovation and technology transfer, entrepreneurship support, access to finance, and data-driven decision-making to fully realize these opportunities.
