Serbian Finance Minister Sinisa Mali said that the priority of the Serbian government is to continue growing the economy, that it will not play with the hard-won macroeconomic stability, and announced that in 2025, gross domestic product (GDP) will amount to 73 billion euros.
“We have absolute coordination of monetary and fiscal policies”, Mali said at the opening of the Kopaonik Business Forum, noting that the consolidation of public finances was completed last year.
He recalled that last year was the most successful year for Serbia in terms of economic indicators over the past decade, despite fiscal consolidation measures.
“In the last quarter, the growth rate was 6.1 percent, and the year ended with a growth rate of 4.2 percent”, said Mali, pointing out that this growth would be even higher had the EU not introduced a quota for steel exports, and Pristina tax on import of goods from Serbia.
He also reminded that Serbia achieved a budget surplus for four years in a row, and that in the first two months of this year the result was better by 161 million euros, “because tax collection is better and costs are kept under control”.
“Public debt is under control and we have sufficient reserves if it is needed for any global crisis in the future”, Mali said.
He also said that the share of public debt in GDP, which was more than 75 percent six to seven years ago, is now below 50 percent, adding that it will be agreed with the International Monetary Fund whether and to what extent it will be limited.
Mali also reminded that the Financial Times estimated that in 2019 Serbia attracted the most foreign direct investment in the world, in terms of the size of the country.
According to him, 105 foreign direct investments totaling 3.6 billion euros were realized in Serbia last year.
“RTB and Meita alone contributed to export growth last year with 460 million euros”, Mali said, adding that recently opened factories of other companies would expect a similar contribution.
At the same time, he emphasized, the structure of imports into Serbia is dominated by raw materials and machinery, which, he stressed, is the basis for further growth and higher employment.
According to him, the country’s credit rating is the most important indicator of the country’s economic success.
“Serbia is on the step to an investment rating, which means a lot in terms of the price of capital, the attractiveness of the economy as a whole”, he said.
Mali said that if everything goes as planned, Serbia will receive an investment rating this or no later than next year.
He recalled that in 2019, Serbia, after seven years, returned to the international capital market and stressed that it was an indicator of the success of the reforms that were implemented.
He noted that there were two issues of Eurobonds, and that in the past two weeks Serbia had two issues of bonds, the first one for 20 years in euros with a yield of three percent and the second in dinars for 12 years with a yield of 3.4 percent.
The new Capital Markets Development Strategy will be presented by June, he added.
“Without the development of the capital market, high rates of economic development cannot be ensured”, Mali said, adding that the ability of companies in Serbia to borrow more favorably must be expanded.
He also recalled that of the 180 laws passed last year, 74 were under the jurisdiction of the Ministry of Finance.
One of the most important was the Law on Public Procurement, which will enable the operation of the public procurement portal in July, which means that all public procurements will be conducted electronically, thus allowing for transparency, more competition and less corruption, while the Accounting Act should to ensure the introduction of electronic invoices.
He also announced that the state would continue to gradually reduce its tax burden on wages, Novi Magazin reports.
