information:extraction
Economy

Currently, all of the states are republics, but until World War II all countries were monarchies. Most of the republics are parliamentary, excluding Romania and Bosnia which are semi-presidential. All the states have open market economies, most of which are in the upper-middle-income range ($4,000–12,000 p.c.), except Croatia, Romania, Greece, and Slovenia that have high income economies (over $12,000 p.c.), and are classified with very high HDI, along with Bulgaria, in contrast to the remaining states, which are classified with high HDI. The states from the former Eastern Bloc that formerly had planned economy system and Turkey mark gradual economic growth each year. The gross domestic product per capita is highest in Slovenia (over $29,000), followed by Croatia and Greece (~$20,000), Romania, Bulgaria (over $11,000), Turkey, Montenegro, Serbia (between $10,000 and $9,000), and Bosnia and Herzegovina, Albania, North Macedonia (~$7,000) and Kosovo ($5,000). The Gini coefficient, which indicates the level of difference by monetary welfare of the layers, is on the second level at the highest monetary equality in Albania, Bulgaria, and Serbia, on the third level in Greece, Montenegro and Romania, on the fourth level in North Macedonia, on the fifth level in Turkey, and the most unequal by Gini coefficient is Bosnia at the eighth level which is the penultimate level and one of the highest in the world. The unemployment is lowest in Romania and Bulgaria (around 5%), followed by Serbia and Albania (11–12%), Turkey, Greece, Bosnia, North Macedonia (13–16%), Montenegro (~18%), and Kosovo (~25%).

As nations in the Western Balkans opened up to private investment in the 1990s, newly created enterprises (mostly SMEs) fueled regional economic development by facilitating the transition from a massive state-owned structure to a market economy. SMEs now account for 99% of all active businesses, up to 81% of total value created, and 72% of total employment in the Western Balkans.

The Western Balkans are mostly bank-based economies, with bank credit serving as the primary source of external capital for all enterprises, including SMEs. Despite this, the region's bank credit supply is limited and undeveloped. A recent analysis from the European Investment Bank estimated the funding deficit to be at US$2.8 billion, or around 2.5% of nominal GDP.

In most Western Balkan markets, international banks have a market share of 70% to 90%. At the end of 2023, the macroeconomic environment in the Western Balkans indicates that risks are increasing, threatening to worsen the financial imbalance. Recent survey findings give conflicting data on enterprises' funding circumstances. While supply has fallen as a result of the COVID-19 pandemic and interest rate increasers, it has showed progressive recovery.