The inaugural session of the GDP Council recently convened with participation from business representatives. During the assembly of the Serbian Chamber of Commerce, proposals were put forth to establish additional councils such as the Digitalization Council, along with departmental working groups and committees aimed at addressing specific economic issues. Prime Minister Miloš Vučević emphasized that the role of the state is not to directly manage the economy or act as an employer, but rather to foster an enabling environment that guarantees conditions for economic operations, which he underscored as a cornerstone of the government’s agenda.
“We need a period without elections, around three or four years, where we can focus on addressing legislative and executive tasks without the distraction of electoral cycles,” stated Vučević. He encouraged business leaders to engage as partners in discussions concerning economic legislation through public consultations. Vučević pointed to May’s inflation rate of 4.5% as an indicator of progress, alongside the first reduction in the reference interest rate in some time, aimed at stimulating consumption growth, as reported by RTS.
“We’re witnessing growth in industrial production, particularly in the processing industry, including the food, metal, and electronics sectors,” Vučević noted. “However, there has been a decline in the energy sector due to the planned maintenance at the refinery in Pancevo, which should provide a solid foundation for achieving our GDP growth targets for 2024.”
One of the current challenges highlighted was a decrease in demand for electric vehicles, despite being seen as a key driver of development. This decline could impact manufacturers of automotive components. Marko Čadež, President of the Serbian Chamber of Commerce (PKS), expressed concerns about this trend, noting that it might lead to extended annual vacations for companies in the automotive sector. He highlighted efforts to find interim solutions to mitigate these challenges, underscoring the unpredictable nature of the economic landscape.
Additional challenges facing the Serbian economy, according to the chamber’s AI-based service “Biz Chat,” include maintaining competitiveness, supporting domestic investors, addressing labor shortages, managing demographic issues, and enhancing access to financing sources. There’s an opportunity for domestic companies to innovate and participate in projects related to the Expo, which has received substantial funding.
Overall, the formation of the GDP Council marks a strategic step towards enhancing economic governance and addressing key issues affecting Serbia’s economic landscape.
