The Influence of the Current Crisis on Balkan Countries on Their Way to the EU Integration Processes

The aim of this chapter is to address the key transmission channels and possible mechanisms for minimizing or even neutralizing the effects of the global economic crisis in the Western Balkan countries. In that respect, the macroeconomic indicators will be analysed for the period starting just before the crisis has emerged and ending with the latest available data. Thus, the key factors affected by the crisis to the greatest extent will be selected and considered – inflow of foreign direct investments, credit growth, decreasing of export revenues and remittances, foreign debt, fiscal budget, etc. The empirical research showed that decline of capital inflows (both in the form of FDI and bank loans) and decrease in export revenues are the common transmission channels of spill over effects of global crisis in all Western Balkan countries. Special attention will be paid to measures taken by the governments responding to the crisis.