Serbia

Getty Images

Serbia


Budget balance: -2%
Current account: -17.2%
Sovereign credit rating: BB-/Negative
Stock market: -60%

Recent political uncertainty surrounding the secession of Kosovo and the election of a new government has only exacerbated Serbia's economic problems. Spurred by imports from other European countries, the Balkan nation’s current account deficit stands at 17% of GDP. Attempts by the Socialist-led government coalition to increase spending on social programs may lead to inflation hitting 10.5% this year, although it has fallen off recently due to declining energy costs. Increased access to credit—up 30% annually in 2008—also triggers economic worries. Yet with foreign direct investment growing by 40% this year, compared with 27% in 2007, Serbia is still on track to record 6% GDP growth despite its fiscal troubles.