Abstract

The recent economic crisis affected most of the countries in the world to a greater or lesser extent, including small economies sector. Small economies are a distinctive group of countries distinguished by particular qualities. They are dependent on trade exchange or international investment stream, and both their aggregate demand and supply, and price level depend on the development of the big economies dynamics. This is the reason why the crisis proved a great external shock for the Western Balkan region, which exactly represents small economies. Because the local banks had not trade with toxic asset, only the indirect channels have led to a slowing down of economic development in the region. As a result, a significant economic growth decrease, intense drop of trade exchange dynamics, foreign debt compound, and credit transaction decrease have occurred. The aim of the article is to analyze the economic situation in Balkan countries in a complex way, therefore, on one hand among small economies and on the other hand among the countries that execute the economic transformation. At the same time it presents various remedial programmes, that are being implemented by certain countries in the region. Unfortunately it is assumed and proved that the recovery plans that have been launched did not bring the expected results and the economical achievements have been lost due to the consequences of the global crisis. Economic indicators have been used in order to introduce the consequences of the global crisis in this part of Europe.

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