Serbia achieved the highest economic growth rate in Europe, News
The Minister of Finance, Siniša Mali, stated today that Serbia is successfully ending the year with GDP growth between 7 and 7.4 percent and an average salary which, as he announced, will amount to around 610 euros in December.
Mali said that, if the last two years and last year’s growth rate of minus 0.9 percent are observed cumulatively, Serbia will be the first or second in Europe in terms of the growth rate in the economy.
“The effect of all the reforms we have implemented in the past and the programs we have implemented is that Serbia is achieving the highest rate of economic growth in Europe, and that has never happened,” Mali told TV Pink.
He emphasized that the deficit will be smaller than planned, and the share of public debt in GDP will be around 57.3 percent, which, as he says, is much below the level of Nastricht of 60 percent.
He added that the inflow of foreign direct investments in Serbia amounted to 3.1 billion euros as of October, and that the unemployment rate was 10.4 percent, ie at the level from 2019.
“If we look at every parameter, the economic situation is extremely good, and two weeks ago, the credit rating of Serbia was raised by the S&P agency, which is the first time in history,” said Mali.
Summing up the year, he stated that the Assembly of Serbia adopted 64 laws proposed by the Ministry of Finance, and that a new Law on the Capital Market was adopted yesterday, which, as he says, is harmonized with European directives.
“What the economy needs depends not only on bank loans, but also on tokens and various other instruments to finance and procure equipment. We are keeping pace with the world, that law should contribute to even stronger and faster growth of the economy,” said Mali.
He stated that the Law on e-invoices has been amended and that a new system of fiscalization will be implemented as of May 1, as well as that more than 70,000 business entities have applied for e-fiscalization so far.
As he said, more than 50,000 business entities applied for subsidies and reminded that the state pays 100 euros per point of sale and 100 euros per fiscal device, and that the deadline for applying for subsidies is January 31, 2022.
When it comes to e-invoices, he noted that the deadline for the public sector to apply the new system from May 1 has been moved, while, as he says, by the end of next year, everyone in the private sector, who are VAT payers, will be obliged to introduce an e-invoice system.
“It is the most important request of the economy that VAT be refunded to them immediately, when the input and output invoices match, the tax administration refunds VAT on the same day. We are doing everything to make the business environment more attractive and competitive,” said Mali.
The “Open Balkans” will contribute to the growth of the GDP of the entire region
The Minister of Finance, Siniša Mali, stated today that the “Open Balkans” is a visionary initiative of Aleksandar Vučić, which not only additionally connects the countries of the Western Balkans, but also aims to contribute to GDP growth in the entire region.
Mali said that five agreements between Serbia, Northern Macedonia and Albania were signed at the summit in Tirana this week, and stated that if they are implemented in the right way, according to World Bank estimates, GDP growth of up to seven percent in the entire region can be expected.
As he says, one of the signed agreements recognizes phytosanitary and veterinary certificates, which, as he assessed, was one of the biggest obstacles for the fast flow of goods across the borders of the three countries.
“There will be no long waits, and the customs, phytosanitary and veterinary inspection will work 24 hours a day, seven days a week, which ensures the unhindered flow of goods and people,” Mali told TV Pink.
He reminded that from January 1, citizens of all three countries can work wherever they choose.
“Now there is a possibility for an engineer to spend a month or two in a factory, to transfer his knowledge or advance technology, now he does not have to wait for a work permit, now everything is accelerating,” said Mali.
He added that Serbia’s economy is the largest in the region, but that there is a shortage of labor.
“Investors are coming to us, but we need workers, so we want to connect and open the market. This is a huge step that will contribute to the growth of the economy and connect us, together we are becoming bigger and more attractive and we are pushing the whole region forward,” the minister said.
He reminded that the European Commissioner for Enlargement, Oliver Varhelyi, also addressed the summit in Tirana and that he supported the “Open Balkans” because, says Mali, it is in the EU’s interest that the entire Western Balkans region progresses economically.
He noted that due to the high price of energy, factories and plants in Europe are being closed and that workers are losing their jobs, while a similar thing happened last year in the United States, when tens of thousands of workers lost their jobs.
“Serbia avoided that scenario, because we reacted in the right way with three packages of assistance to citizens and the economy. We fulfilled every promise in a day and a dinar and showed how stable our finances are,” said Mali, RTV reports.