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.