The Republic of Serbia is in a strong financial position, with 600 billion dinars (about 5.5 billion euros) currently in its accounts, ensuring liquidity and stability, according to Finance Minister Siniša Mali.
In his remarks today, Mali emphasized the government’s ongoing economic policy aimed at improving living standards. He pointed out that the 2025 budget will include provisions for increased wages, pensions, and the minimum wage, as well as further improvements in citizens’ quality of life.
Mali also highlighted the government’s commitment to achieving its “Leap into the Future – Serbia 2027” program, which consists of 323 projects worth approximately 18 billion euros, aimed at driving the country’s development.
The Serbian economy is growing significantly faster than the Eurozone, with GDP growth of 3.9% in the first three quarters of 2023, compared to just 0.8% for the Eurozone. Mali predicts that Serbia’s GDP growth will continue at around 3.7-3.8% in 2024, providing a strong basis for future increases in wages and pensions.
Serbia’s economic stability is further underscored by its low unemployment rate of 8.2%, the lowest in history and its solid public debt position, which stands at 46.5% of GDP—well below the Eurozone average of 88.1% and the global average of 93%. Despite global challenges, including the COVID-19 pandemic, energy crises, and geopolitical instability, Serbia has maintained a responsible economic policy.
The private sector will continue to be a key driver of growth, following an 8% wage increase in the public sector in January, with an 11% increase predicted for education employees.
Mali also noted that Serbia’s average salary is expected to rise from 825 euros currently to over 900 euros by December 2023, with projections for the average salary to exceed 1,000 euros by the end of 2024 and reach 1,400 euros by 2027.
In addition, pensioners will receive a 10.9% pension increase starting in December. Mali emphasized that these increases will ensure that citizens’ incomes continue to outpace inflation, which is projected to be around 3.0-3.5% next year.
Further efforts to ease the tax burden on employers will also continue, with the wage burden on businesses now below 60%.
Finally, Mali outlined the upcoming investment in the National Stadium, which will cost 464 million euros, along with significant infrastructure development in the surrounding area. These investments are expected to drive further economic growth, with GDP growth projections of 4.2% for 2024.
Mali expressed confidence that as global tensions ease, Serbia’s economic growth will continue to rise.
