“Serbian economy uncompetitive”

President of the Economists Association of Serbia Dragan Djuricin says that the Serbian economy is uncompetitive in the market. He also said that the government would have to invest more in the sector. “Serbian economy uncompetitive” In his opinion, the government must focus on structural reforms in the long run and it must establish a connection between policy and economy. The government should also increase investments in vital sectors, such as the electric power industry and telecommunications, logistics, military sector and food industry. “The situation that Serbia is in is economically unsustainable in the long run,” Djuricin warned, adding that the only way for the country to emerge from the crisis is for the government to investe more money into the economy. “This model is unsustainable for political reasons because it enables larger consumption than production, so this generation is spending the future of the next generations. It can be balanced either by incurring new debts and putting the weight of the debt on next generations or by an inflation of the budget deficit, which depreciates savings of the population, which, again, is politically unacceptable,” he explained. Trade Minister Slobodan Milosavljevic says that he expects stability in prices and that he does not support increases in the prices of electricity and gas which have been discussed lately. “In my opinion, if wages and pensions are frozen, and they have remained frozen, the prices of gas and electric power should not be raised by the end of the year. That will also certainly mean total stability in the price sector. I believe that we will fulfill this year’s plan for inflation within the projected limits of six plus or minus two percent,” the minster stated. According to Finance Minister Diana Dragutinovic, the request for an increase in the price of electricity by the Serbian power company EPS has arrived to the ministry, but the government has yet to discuss it.

“Serbian economy uncompetitive”

In his opinion, the government must focus on structural reforms in the long run and it must establish a connection between policy and economy.

The government should also increase investments in vital sectors, such as the electric power industry and telecommunications, logistics, military sector and food industry.

“The situation that Serbia is in is economically unsustainable in the long run,” Đuričin warned, adding that the only way for the country to emerge from the crisis is for the government to investe more money into the economy.

“This model is unsustainable for political reasons because it enables larger consumption than production, so this generation is spending the future of the next generations. It can be balanced either by incurring new debts and putting the weight of the debt on next generations or by an inflation of the budget deficit, which depreciates savings of the population, which, again, is politically unacceptable,” he explained.

Trade Minister Slobodan Milosavljević says that he expects stability in prices and that he does not support increases in the prices of electricity and gas which have been discussed lately.

“In my opinion, if wages and pensions are frozen, and they have remained frozen, the prices of gas and electric power should not be raised by the end of the year. That will also certainly mean total stability in the price sector. I believe that we will fulfill this year’s plan for inflation within the projected limits of six plus or minus two percent,” the minster stated.

According to Finance Minister Diana Dragutinović, the request for an increase in the price of electricity by the Serbian power company EPS has arrived to the ministry, but the government has yet to discuss it.