Ten major goals that the Serbian government reorganized set up in March and he wants to carry out until early next year “before it will challenge the conflicting social situation”, said European Commission (EC) in the most recent economic analysis.
In Serbia, the gross domestic product (GDP) last year rose 1.8 percent above expectations, and the economic recovery was based on exports, given that there has been a gradual improvement in the economies of major Serbian partner, the paper said the EC .
Inflation in February this year, mainly due to the jump in food prices and
energy in the world market, reaching a rate of 12.6 percent compared to that month in 2010, the unemployment rate is still about 20 percent, budget deficit has remained the same – 4.5 percent of GDP, which is better than planned.
The current account deficit was slightly reduced Serbia last year and amounted to 7.5 percent of GDP.
The European Commission indicates that in mid-April, says successfully implemented the SBA Serbia with the International Monetary Fund and the authorities in Belgrade withdrew only half of the available three billion of assets, given the hefty foreign exchange reserves “of about ten billion euros.
At the same time the inflow of foreign capital was reduced by 11 percent, mostly due to lower foreign direct investment and total external debt of Serbia last year increased by one billion and 300 million euros.
This debt is slightly decreased in the first quarter of this year to 23 billion euros, or nearly 80 percent of GDP.
It also suggests that “the U.S. continued to lose value, while domestic consumption and investment began to grow slowly due to limited available income.”
Despite the economic recovery, unemployment in Serbia has hit 20 percent of working-age population, although the loss of jobs stopped by half last year.
The EC pointed out that you are the first two months rose ‘unfrozen’ public sector salaries and pensions so that the nominal income rose by 11.7 percent a year, but really it was still 0.2 percent due to inflation.
Wage growth in private sector will be added, likely to remain “muted”.
Services continued to be the key driving force for economic growth in the country, according to the judges of the Commission in Brussels.
Thanks to the demand in foreign markets has been a growth of Serbian exports more oriented economy, with a jump in industrial production of at least three percent compared to 2009, especially in metallurgy and chemical sectors.
Foreign trade deficit, despite export growth of 24 percent, still represents 16.5 percent of GDP.