Vlahovic: We must have annual growth of 7 pct

Achieving fiscal and monetary stability is no longer the central issue for the Serbian economy, which now needs robust growth to catch up with developed European countries, says Aleksandar Vlahovic, who heads the Kopaonik Business Forum Programming Committee.

20 Februar 2020 16:53

BELGRADE - Achieving fiscal and monetary stability is no longer the central issue for the Serbian economy, which now needs robust growth to catch up with developed European countries, says Aleksandar Vlahovic, who heads the Kopaonik Business Forum Programming Committee.

Last year's growth - essentially due to a construction industry boom and the capital project of the TurkStream gas pipeline - moves Serbia forward compared to central and eastern European countries, Vlahovic told Vecernje novosti.

Investments and institutions are the key precondition for achieving and maintaining high growth rates, he said.

"At the same time, Serbia must have an ambitious development agenda that will enable it to reach annual growth of 7 pct. That would double the GDP within a period of one decade. In terms of the population's living standards, such growth would push Serbia strongly towards today's EU average," he said.

The ambitious growth implies a significantly higher investment-to-GDP ratio of 26 pct compared to the present 22 pct, he noted.

Productivity - which is at just a third of the EU average - needs to be boosted as well and exports must be increased, too, because they account for around 40 pct of the present GDP, he said.

Photo: Tanjug/D. Kujundzic, file

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