In the autumn report on the world economic prospects, the World Bank again increased the forecast of economic growth in Serbia for 2021: from 3.1 percent in January, to five percent in June and now 6 percent. Another report is forthcoming by the end of the year, and the Government’s projection is to end the year with a growth of seven percent.
The report of the World Bank states that the Serbian economy is recovering from the crisis due to the pandemic. This is supported by the data that in the first quarter of this year, the growth of the gross domestic product was 1.8 percent compared to the same period last year, and in the second quarter 13.7 percent. Behind that, in fact, is that both the state and the economy have done their job well.
“A serious and strong effect on the correction of growth and the results we have is the support that the Republic of Serbia has paid to the citizens and the economy. From the aspect of population, we have maintained a high level of demand. From the aspect of economy, we have maintained a high level of liquidity. Therefore, the unemployment rate managed to be kept under control,” says Sasa Stevanovic, State Secretary in the Ministry of Finance.
According to the data of the Ministry of Finance, so far, close to two billion euros have been paid for capital projects, without public companies and local self-governments.
To this should be added, according to some estimates, about 40,000 buildings being built in Serbia, so it is not surprising that construction is the engine of development.
“Even with 20%, construction currently participates in GDP, which has never been recorded before. Maybe in those post-war years when construction started. This is really a golden age, let’s say, for builders,” points out Veselin Raznatovic from the Union of Employers of Serbia.
Trade, transport, financial services and information and communication technologies also contributed to better results, while industrial production and agriculture will remain at the originally projected level.
The health condition of the Serbian economy is perhaps best seen in banks, where problem loans with 3.63 percent are at an all-time low.
“We have supported more than 3,300 small businesses under the guarantee scheme. We see more and more loans for investment activities in the field of project financing. Exports are slowly growing,” explains Vladimir Boskovic, President of the Executive Board of Sberbank Serbia.
As much as such reports take into account the inflow of investments, at the same time they are a signal to foreign investors whether to invest in a particular country.
“In the previous period, the Government of the Republic of Serbia fully complied with everything it promised: it gave investors the opportunity to invest with us, it was a serious partner and that is known,” said State Secretary Sasa Stevanovic.
The World Bank predicts growth for the region of Eastern Europe and Central Asia next year as well, with the fear of the continuation of the pandemic and the hesitation of parts of the population to accept immunization, Nova reports.
