The Impact of Global Economic Crises on Serbia

Abstract

This paper provides an in-depth analysis of the effects that major global economic crises have had on Serbia, a small and open transitional economy, over the past twenty years. The paper examines four key crises: the 2008 global financial crisis, the COVID-19 pandemic, the war in Ukraine accompanied by an energy crisis, and the recent wave of global inflation. Each of these crises is explored through the lens of their origins, transmission mechanisms, and specific impact on Serbia’s macroeconomic indicators— particularly GDP growth, employment, inflation, investment, and public debt.

The paper also analyzes the Serbian government’s policy responses, including monetary and fiscal measures, and evaluates their short-term and long-term effectiveness. Special attention is given to the role of institutions, external dependencies (such as foreign investment and energy imports), and the structural challenges of the Serbian economy.

Findings suggest that although Serbia managed to implement some stabilizing policies, the country’s limited institutional capacity, high external exposure, and lack of structural preparedness reduced the overall effectiveness of crisis management. The paper concludes that building economic resilience must become a long-term strategic goal, focusing on diversification, digitalization, social safety nets, and institutional reform in order to mitigate the effects of future global shocks.