Vucic: Nidec to open factory in Novi Sad in May

NOVI SAD - Serbian President Aleksandar Vucic announced on Thursday Japan's Nidec Corp would open a factory in Novi Sad in May.

Vucic was speaking to reporters after the opening of a Continental Automotive Serbia factory at Kac, near Novi Sad.

He said rising manufacturing costs in Europe and worldwide disrupted some investment-related plans but that it was substantial to raise Serbia's growth and boost its economy.

Both the FED and the European Central Bank are raising key policy rates, which will slow growth, but Serbia must fight against that, he said.

"Our key policy rates are high, too, but while lowering inflation, we must go for forced growth and invest even beyond our means to bolster our economy by boosting growth," Vucic noted.

If Europe is to register growth of up to 1 pct over the next several years, it is substantial to take Serbia's growth rate to over 2.5 pct, he said.

"That will dramatically reduce the gap between us and the countries that are ahead of us," Vucic said.

He also said he would propose doubling government subsidies for investors in regions south of the Danube and Sava rivers.