The President of the Fiscal Council, Pavle Petrovic, assessed today that Serbia has the potential to raise economic growth from about 3.5 percent to five and 5.5 percent per year, along with better work of institutions and the rule of law.
At the panel within the final annual conference “Is there socio-economic development without the rule of law?”, Petrovic said that the quality of institutions is an important factor that slows down the departure of people from the country in addition to the level of development as a basic factor.
Petrovic also believes that migrations from the country would not significantly slow down just because the average salary in 2025 would be 900 euros, as announced, but if the institutions were improved.
He says that the average salary in Croatia is now 900 euros and that emigration is huge, while in Latvia and Lithuania, with the same average salary, emigration is minimal.
“The important difference between Croatia and Latvia and Lithuania is precisely the quality of institutions,” said Petrovic.
He believes that Serbia lags behind some Central and Eastern European countries, such as Romania and Bulgaria, in the quality of the work of institutions.
He stated that the level of investments, quality of institutions and education are the basic determinants of economic growth in the EU, and that, in addition to institutions, education in Serbia is of relatively lower quality compared to others and that the level of investments is low, primarily in domestic private sector, Dnevnik reports.
