Serbian economy "could grow 2.5%"

Serbia's 1.5 percent economic growth in the first nine months of 2010 indicates the number could reach 2.5 percent by the end of the year.

Izvor: Tanjug

Friday, 12.11.2010.

16:51

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Serbia's 1.5 percent economic growth in the first nine months of 2010 indicates the number could reach 2.5 percent by the end of the year. This would be the best result in the region, said head of the Serbian Chamber of Commerce (PKS) Milos Bugarin. Serbian economy "could grow 2.5%" The prognosis sparks optimism, since the record in 2009 was a drop of 3 percent, Bugarin told Tanjug. This year's growth is uneven, Bugarin noted, adding that the biggest improvements were recorded in the sectors of financial intermediation, transport and telecommunications. Two thirds of industry branches have recorded growth this year, while others dropped significantly compared to the same period last year, Bugarin remarked. Construction industry dropped the most, 11.9 percent, he said. "All the things that marked this year will present a large problem in 2011 as well, this mostly refers to a high level of non-liquidity, especially in small and medium-sized companies, although the problem has been lessened by government measures that introduced liquidity loans," Bugarin stated. All payments by public enterprises in 2011 must be according to the European directive, meaning that they should not take more than 30 days.

Serbian economy "could grow 2.5%"

The prognosis sparks optimism, since the record in 2009 was a drop of 3 percent, Bugarin told Tanjug.

This year's growth is uneven, Bugarin noted, adding that the biggest improvements were recorded in the sectors of financial intermediation, transport and telecommunications.

Two thirds of industry branches have recorded growth this year, while others dropped significantly compared to the same period last year, Bugarin remarked. Construction industry dropped the most, 11.9 percent, he said.

"All the things that marked this year will present a large problem in 2011 as well, this mostly refers to a high level of non-liquidity, especially in small and medium-sized companies, although the problem has been lessened by government measures that introduced liquidity loans," Bugarin stated.

All payments by public enterprises in 2011 must be according to the European directive, meaning that they should not take more than 30 days.

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