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Keldura Daily · Markets & Economy

Global Economy and Markets: China growth, FDI strategy shifts, and medicine affordability in the Western Balkans

The evidence points to three substantive developments: China’s growth mix is holding up but is expected to cool as domestic demand remains weak; Europe and Central Asia are rethinking foreign direct investment strategies to prioritize quality, resilience, and the green transition; and the Western Balkans are confronting persistent out-of-pocket medicine costs that still strain household finances. These are separate stories, but each shows policymakers moving from broad goals to more targeted, systems-based reforms.

The field note

1 source · 2 items
  1. Growth is projected to moderate to 4.4 percent in 2026 amid persistent domestic demand headwinds [1].
  2. The low-carbon transition is changing labor demand, with green technical skills and transferable competencies g…
  3. Those skills carry wage premiums of around 22 to 25 percent, but skill mismatches are limiting inclusive employ…
Story 011 source

China’s growth is holding up, but rebalancing pressure is rising

The World Bank’s July 2026 China Economic Update says China maintained solid growth early in the year, with high-tech investment and exports offsetting subdued consumption [1]. Momentum then softened in the second quarter after the global energy supply shock, though the report says the impact was cushioned by large oil reserves, diversified fuel imports, a high share of renewables, and policy measures [1].

Why it matters

The report points to a Chinese economy that is still growing, but increasingly constrained by weak domestic demand, which makes the outlook for global trade, commodities, and emerging-market supply chains more uncertain [1]. It also signals that near-term policy support and longer-term structural reform will both be needed if China is to sustain growth while rebalancing its economy [1].

Key insights

  • Growth is projected to moderate to 4.4 percent in 2026 amid persistent domestic demand headwinds [1].
  • The low-carbon transition is changing labor demand, with green technical skills and transferable competencies gaining importance beyond low-carbon sectors [1].
  • Those skills carry wage premiums of around 22 to 25 percent, but skill mismatches are limiting inclusive employment gains [1].
  • The report argues for short-term reskilling and labor-mobility support, plus longer-term education and labor-market reforms [1].
Story 021 source

Europe and Central Asia are shifting FDI strategy from volume to value

A World Bank brief says countries across Europe and Central Asia are moving away from judging foreign direct investment only by volume and project counts [3]. Instead, governments are using investment strategy to target private capital that supports competitiveness, innovation, quality jobs, sustainability, and long-term resilience [3].

Why it matters

This matters because it changes how governments compete for capital: the goal is no longer simply to attract more FDI, but to attract investment that helps transform the economy [3]. That could reshape policy tools, the role of investment promotion agencies, and how countries measure success in a tighter, more selective global investment environment [3].

Key insights

  • The brief says FDI strategies are becoming practical tools for identifying priority sectors, coordinating reforms, and targeting investors with higher development impact [3].
  • Countries are shifting beyond low-cost competition as sustainability rules tighten, supply chains reorganize, and labor markets become more constrained [3].
  • New investment is moving into more capital-intensive and higher value-added activities, including automotive and transport equipment, higher-tech machinery, and electrical equipment [3].
  • Investment promotion agencies are being asked to do more than marketing: they are now expected to support supplier linkages, aftercare, and decarbonization [3].

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