Finance Minister Siniša Mali presented Serbia’s investment opportunities at an investor meeting organized by Bank of America, which manages investments worth $12 trillion. He emphasized that Serbia has become even more attractive to major investors.
Mali stated that the two key factors Serbia offers to large investors are credibility and the government’s commitment to fulfilling its promises. He noted that the country had the chance to effectively showcase itself in discussions with over 20 of the largest investors in the U.S.
These funds can invest anywhere in the world, and they are now keen to see what is happening in Serbia, especially as the country is appearing with an investment-grade credit rating for the first time. This development has prompted them to take Serbia more seriously, making it more appealing for investments.
Participating in the annual meetings of the International Monetary Fund (IMF) and the World Bank, Mali referenced IMF forecasts indicating that the global economy is expected to grow at an average rate of about 3.2% over the next few years, which is significantly lower than the growth rates seen in the past two decades.
“This raises another issue—an exceptionally high level of public debt, which stands at $100 trillion for all countries worldwide. This enormous burden slows growth and limits governments’ ability to invest in improving the quality of life for citizens,” Mali explained.
He also highlighted the importance of sustainable development, emphasizing the need to find new growth sources that respect environmental goals and can deliver high long-term growth rates while also improving living standards.
“This is a trilemma that no one currently has an answer to, and it poses a challenge because such a situation slows down the economy, leading to job losses, especially after the pandemic, whose effects are still being felt, as well as the repercussions of the 2022 energy crisis and conflicts in Ukraine and the Middle East,” Mali noted. He pointed out that Serbia is successfully weathering these challenges, citing the IMF’s Deputy Director Bo Li’s comment that Serbia is a bright spot in the global economy.
“Our economy is growing at a rate of 4.3% in the first half of this year, making us the second fastest-growing economy in Europe. Unlike the global economy, Serbia is on the rise. We continue our reforms, and our public debt to GDP ratio stands at 46.5%, below the Maastricht criteria. What the global economy struggles to achieve, a small Serbia is doing successfully,” Mali concluded.
The annual IMF and World Bank meetings began on October 21 and will conclude tomorrow.
