“Serbia to have modest economic growth in 2012”

IMF forecasts say that Serbia will have a modest economic growth in 2012, IMF Resident Representative in Belgrade Bogdan Lissovolik says.

Izvor: Tanjug

Sunday, 20.11.2011.

13:01

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IMF forecasts say that Serbia will have a modest economic growth in 2012, IMF Resident Representative in Belgrade Bogdan Lissovolik says. He added that the economic growth would total 1.5 percent. “Serbia to have modest economic growth in 2012” Lissovolik explained that the growth would be modest because three of the country's main trade partners - Germany, Italy and Bosnia-Herzegovina, would face recession and economic stagnation next year. He told Belgrade-based daily Politika that the prognosis for Serbia's economic growth in 2012 was based on stagnation in revival in the entire eurozone and fractional recession in Italy. “However, if the eurozone had negative growth rates and recession in Italy was deeper than expected, the prognosis for Serbia would become less optimistic,” the IMF representative underlined. According to Lissovolik, the IMF will monitor the situation and analyze all developments. “It is important for the creators of the economic policy in Serbia to react adequately and keep the fiscal situation under control,” he added. “The budget deficit in Serbia next year should be under 4.5 percent, which the maximum limit proscribed by the law, in case the economic growth is lower than expected, given that public finances have to be under control,” Lissovolik said. He noted that the level of public debt in Serbia was quite high, and therefore if the economic growth was lower than expected, we would have on one hand a formula which envisaged an increase in deficit, and on the other a limit in financing and the level of public debt.

“Serbia to have modest economic growth in 2012”

Lissovolik explained that the growth would be modest because three of the country's main trade partners - Germany, Italy and Bosnia-Herzegovina, would face recession and economic stagnation next year.

He told Belgrade-based daily Politika that the prognosis for Serbia's economic growth in 2012 was based on stagnation in revival in the entire eurozone and fractional recession in Italy.

“However, if the eurozone had negative growth rates and recession in Italy was deeper than expected, the prognosis for Serbia would become less optimistic,” the IMF representative underlined.

According to Lissovolik, the IMF will monitor the situation and analyze all developments.

“It is important for the creators of the economic policy in Serbia to react adequately and keep the fiscal situation under control,” he added.

“The budget deficit in Serbia next year should be under 4.5 percent, which the maximum limit proscribed by the law, in case the economic growth is lower than expected, given that public finances have to be under control,” Lissovolik said.

He noted that the level of public debt in Serbia was quite high, and therefore if the economic growth was lower than expected, we would have on one hand a formula which envisaged an increase in deficit, and on the other a limit in financing and the level of public debt.

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