Bakker said the IMF now saw clear signals of recovery in the Western Balkans, which was primarily owing to an increase in exports.
The fact that Montenegro has successfully taken loans on the international financial market is positive for the entire region. At the same time, that recovery is fragile and the countries must launch much more ambitious reforms to achieve more significant economic growth in the future, Bakker said.
He explained that many countries, including Bosnia and Herzegovina, had so far relied on foreign capital that was used to boost domestic demand.
That model of growth is no longer sustainable, he said, explaining that economic growth had to be based primarily on the growth of exports and for that to happen, productivity and competitiveness had to be significantly improved.
Commenting on the situation in Bosnia, the IMF official said the country's foreign trade balance had improved significantly, with foreign exchange reserves having stabilised. The country's banking sector is strong and can support real economic growth.
We expect real economic growth to continue and GDP in 2011 to go up three percent, said Bakker.