The editor-in-chief of the magazines “Business” and “Ekonometar”, Radojka Nikolic, told RTS that the fall in GDP this year at the world level will amount to 6% or 8.7 for the EU. Serbia is most affected in the field of machine and car industry, and there is tourism and traffic, said Nikolić.
The European Commission predicts that in the second quarter of this year, the European economy will experience the heaviest decline since the Second World War.
Visiting the RTS morning program, Radojka Nikolic, said that such a decline was quickly felt everywhere, even here, the forecasts came out recently – they were made by the European Commission and the IMF.
According to her, this is the biggest drop in world GDP, as well as the European one since the Second World War.
He says that the fall this year at the world level will amount to 6% or 8.7 for the EU.
“These are huge earthquakes, and when the next year is included, the growth of 4 to 6 percent will still remain a minus, so the return to the level from 2019, which was marked as successful, is expected only in 2022,” Nikolic pointed out.
“We have two lost years, which is bad for underdeveloped economies like ours,” she pointed out.
Nikolic emphasizes that the earthquake is most felt in tourism and traffic, with oil companies.
“When you look further at the sectors – it’s about the machinery and car industry and that’s the part where we are affected because the exporters are Smederevo Ironworks and Fiat among the exporters. On the list of 10 exporters, he said about shitty companies operating in Serbia, except Petrohemija,” Nikolic pointed out and added that all foreign companies depend on parent companies.
He reminds that the Ironworks shut down one furnace because there is no demand for steel and the Ironworks will produce less, the workers in Fiat were on vacation, now some of the workers have returned.
“The picture is bad, the economic future is not great for this year, and the recovery will not be able to make up for what we lost,” the editor-in-chief of the magazines “Business” and “Ekonometar” pointed out.
Speaking about the help, Nikolic says that Serbia took measures to help pay the minimum and that the essence was to maintain the liquidity of the companies, to have money in business.
He believes that it would be good for the sectors most affected to have more help, and he estimates that we will borrow 7 billion euros, our public debt is increasing and the savings from before are being annulled.
“All countries in the world are borrowing, it is allowed to go into borrowing and maintaining production in that way,” she pointed out.
Speaking about the solution for employees in tourism, Nikolic says that many agencies will disappear.
“Those who used the minimum wage will have a problem, they had the obligation not to lay off workers until November, the situation is unfavorable for the entire sector,” Nikolic points out.
The textile industry has been hit hard, Nikolic points out, adding that we have had an accelerated development of the industry with 100,000 employees.
“The production of masks cannot compensate for the entire collection. For example, Indesit, a famous chain, has decided to close many stores, there is no market,” sums up Nikolic.
“A dramatic autumn awaits us, in addition to the story about the children going to school, you also have job security and uncertainty about the virus, which side this will go to. The worst thing is that you have to take care of your health and work so that your family doesn’t fail,” Nikolic said.
Speaking about housing loans, Nikolic says that these loans are favorable, and when it comes to interest rates, the ECB keeps the reference interest rates low and the period of low interest rates will last.
“It is certain that interest rates will not rise because there will be money on offer, either through debts, an increase in public debt in order for the economies to recover,” Nikolic concluded, InfoPress reports.
