Deficit reduction and debt and legal certainty are major challenges for the Serbian government

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The key challenge in 2022 for the Serbian government will be to remain consistent with the planned reduction of the budget deficit and public debt, while legal security and a good business environment are the most important for small and medium enterprises, said today the member of the Fiscal Council Nikola Altiparmakov.
At the meeting organized by the European Investment Bank and the delegation of the European Commission, he pointed out that the reduction of the deficit and public debt enable the Government of Serbia to face the new crisis with the possibility to react.
The gathering was dedicated to the situation in the sector of small and medium enterprises, which Altiparmakov says is crucial to know the business conditions, and that they will not change from year to year.
Simon Savsek from the economic department of the European Investment Bank said that the main challenge would be the dynamics of inflation and public debt.
He added that small and medium enterprises need more investment in green, digital and education, as well as inclusion in green and sustainable supply chains.
The director of NALED’s competitiveness units, Marko Danon, said that the biggest challenges come from the external environment, because there are also sources of inflation and problems in the interruption of supply chains.
He assessed that the economy of Serbia is getting tougher this year, and in order for it to remain so, the rule of law and a predictable macroeconomic environment are necessary.
Danon emphasized the positive effect that the introduction of invoicing and digitalization will have, and added that despite the favorable trends on the labor market in Serbia, about half a million people still work informally, which contributes to the gray economy.
Vladimir Radovanović from the Center for Support Programs for Small and Medium-Sized Enterprises of the Serbian Chamber of Commerce said that inflationary pressures through interest rates on the international market will be reflected in business in Serbia.
He estimated that inflation is already affecting the prices of raw materials and energy, which brings higher costs of production and transport.
In the SME sector, access to financing to maintain liquidity remains crucial, as does their access to supply chains, as most have so far focused on the internal market.
Economic journalist Radojka Nikolic reminded that the Association of European Entrepreneurs recently mentioned interrupted supply chains, changed consumer behavior and liquidity as the biggest possible problems in the business of small and medium enterprises in the next year, Dnevnik reports.