Impact of the economic downturn on the balance of payments of the new EU member states

Abstract

The article analyses the balance of payments of 12 new EU member states in the period from 2007 to 2009. The impact of the economic downturn, which began in 2008 and continues through the present, has been stronger in the new than in the old' EU member states. It is particularly obvious as one analyses their balance of payments: evident changes in the balance of goods mainly due to a drop in imports, a decrease in flows in the balance of services, breaks in capital flows. All the above-mentioned factors pressurised many countries into reducing official international reserves. The analysis presented in the paper shows that different countries reacted to the changes in the economic situation in different ways - made different decisions about dealing with the difficulties encountered.