The upcoming recession due to Covid 19 and its impact on economic growth and the digital transformation in the Balkan region

Abstract

The Covid-19 pandemic has affected the economy across the globe and generated uncertainties in the functioning of the industries, governments and the daily life of people. The impact that this crisis has on poverty alleviation, the global GDP and the rapid development of the digitalization process are some of the factors that have reshaped the world. Hence, the way in which the companies and different sectors have operated is now in the past. The new economic condition requires quick adaptability to the new trends and fast implementation of digital solutions. Therefore, new strategies and more advanced practices are a necessity not only for the proper functioning of the businesses, but for the governments and the countries as well. The rapid shift towards the digital channels caught many businesses off guard. All these fast changes and the late transformation slowed down the economic growth, mostly in the countries that did not reacted immediately. Considering that the Balkan region tried to provide digitally enhanced offerings and maintain the economic growth during the pandemic, many people were laid off, many business sectors were affected and many companies were closed. All these transformations affected the economic development and stagnated the growth. Therefore, the aim of this paper is to evaluate what are the main factors that have affected the economic growth in the Balkan region and the reason that contributed to digital transformation of these countries.