ABSTRACT

Trade and the balance of payments of the Western Balkan countries are essential for understanding the region's economic relations with the rest of the world. The paper analyzes how the countries of the Western Balkans manage their trade balances, with a particular emphasis on external economic factors such as trade transactions, remittances, and foreign direct investment. By analyzing economic data from recent years, we identify the key determinants influencing trade balance and the financial stability of the countries in the region. The study highlights challenges such as high levels of external indebtedness and dependence on foreign financing, while also emphasizing the potential benefits stemming from foreign investments and stable remittance inflows. Moreover, the paper explores the role of EU integration in shaping foreign trade and economic relations, as well as the potential benefits and risks associated with reliance on foreign capital. In conclusion, the paper provides insights into the specific economic challenges and opportunities arising in the context of trade and the balance of payments in the Western Balkans.

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