Mali: Blockades have had no small impact on Serbian economy

BELGRADE - Blockades in Serbia in the past ten months have had "no small" impact on the national economy, Serbian Finance Minister Sinisa Mali said on Tuesday and added that this was evident from a decline in VAT collection and lower GDP growth, noting that the impact on the economy would not be a long-term one and that a recovery was possible as early as next year.

Speaking to reporters after a session of the Social and Economic Council, Mali said the decline was a direct consequence of the blockades and violent scenes in the country and that, as a result, investors were avoiding Serbia and people were spending less.

"Let me remind you that, last year, we were the third fastest-growing economy in Europe and we wanted to be number one this year with 4.2 pct GDP growth. Unfortunately, we are where we are, at somewhere around 2 pct right now," Mali said, adding that Serbia had registered a significant decline of FDI inflow in the past seven or eight months.

He noted that he did not believe the effect of the blockades would be a long-term one.

"At the end of the day, you can see for yourselves how many people gather at the blockades - the number is constantly declining. The academic year has begun in the appropriate manner and, in my opinion, the situation is stabilising," Mali said.

He said he was confident that, through accelerated growth and development and with more energy and effort, the country would fully recover from the economic losses next year.