Petrovic: Higher growth requires structural reforms

Serbia is seeing a trend of 3-3.5 pct growth - which is lower than the growth in central and eastern European countries - but it has real potential for growth at a rate of around 5 pct, Fiscal Council President Pavle Petrovic said Tuesday.

12 Novembar 2019 17:48

BELGRADE - Serbia is seeing a trend of 3-3.5 pct growth - which is lower than the growth in central and eastern European countries - but it has real potential for growth at a rate of around 5 pct, Fiscal Council President Pavle Petrovic said Tuesday.

Speaking at a conference hosted by the Belgrade Stock Exchange, he said 5 pct growth would enable Serbia to catch up with central and eastern European countries and added that this was possible but required structural reforms.

He said 2020 fiscal policy plans were good in the narrow sense considering the low consolidated budget deficit of 0.5 pct of GDP, which he said was appropriate for Serbia and enabled a considerable reduction of public debt.

With such a deficit, the public debt, which currently stands at slightly over 50 pct of GDP, will decline by 2 pp a year, he said.

The medium-term policy announced by the government in its fiscal strategy envisions a low deficit in the years to come, which would mean the public debt will continue to decline, he said.

"Our recommendation is that the debt should drop below 45 pct," Petrovic said.


Photo: Tanjug/R.Prelic, file


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