The paper analyzes the determinants of nominal gross domestic product growth in the Western Balkan countries during the period 2008-2024. The aim of the research is to identify the relative importance of fiscal, real, price-related, and external factors in explaining nominal economic dynamics. The empirical analysis is based on a panel sample comprising Serbia, Montenegro, North Macedonia, Bosnia and Herzegovina, and Albania, using a Pooled OLS model with robust standard errors. The results indicate that the key drivers of nominal growth are the growth of government expenditures, increased economic openness, and real GDP growth, with real growth representing the most stable and statistically significant factor. Inflation and public debt growth did not show a statistically significant impact. The findings suggest that nominal growth in the observed economies is predominantly driven by real economic activity and fiscal expansion, with foreign trade also playing an important role.
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Golubović et al. (2026) studied this question.
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