Key developments and challenges

Although the economy is mostly in private hands, the state retains control over key enterprises in the oil, energy and insurance sectors. Once market conditions improve, a major challenge is to complete long-anticipated privatisations in these areas.

The authorities have shown a strong commitment to upgrading the road infrastructure, but the general quality and standards of maintenance still lag behind the level attained in the rest of south-eastern Europe. In light of the ongoing fiscal constraints, further upgrades will require greater private sector involvement along with a strengthening of regulatory entities.

The economy has managed to cope relatively successfully with the global crisis. A debut sovereign rating assigned by Standard & Poor’s in early 2010 is an important signal to international financial markets. However, the main short-term challenge is to survive possible contagion effects from economic weaknesses in the eurozone, especially in neighbouring Greece.