"No reason to lower growth projections"

Serbian PM Mirko Cvetkovic said on Tuesday there was no reason to lower the expected economic growth further below 1.5 percent. He added that he expected the economic crisis in Serbia to start weakening with the end of the crisis in the eurozone. "No reason to lower growth projections" We have more than halved the projections for 2012 compared to a year ago, which is why I think there is no reason now to reduce them further, although it is equally legitimate to think the figure is still too high, but it is equally legitimate to me to think it might be higher," Cvetkovic told Tanjug. The end of the crisis related to the euro will be a positive signal and help improve the economic situation in Western Europe and consequently in Serbia, he expects. "We shall see what the situation is going to be in two to three months. If new measures are needed, we will take them, but I hope the crisis will start weakening," Cvetkovic remarked. According to him, the government made the projections for 2012 based on information from a month or two earlier, but the situation in the markets is changing and could be different in two months. The crisis from the eurozone could spill over into Serbia through two main channels, by reducing foreign investments and by cutting down export due to lower demand in eurozone markets, Cvetkovic pointed out. When it comes to attracting investors, 2011 was fairly successful for Serbia, with around USD 2 billion of direct foreign investments, he noted. "I predict a continuation of the influx of foreign investments for 2012 and I believe we are going to have results at least equal to last year, and I hope a little more than that," Cvetkovic stated. "We have several more large investors coming in. they do not normally like their names mentioned, but those are world names and I am certain they will start investing this year." "Our development must now be mostly based on an export oriented economy, and export means you depend on outside markets," he stressed. Tanjug

"No reason to lower growth projections"

We have more than halved the projections for 2012 compared to a year ago, which is why I think there is no reason now to reduce them further, although it is equally legitimate to think the figure is still too high, but it is equally legitimate to me to think it might be higher," Cvetković told Tanjug.

The end of the crisis related to the euro will be a positive signal and help improve the economic situation in Western Europe and consequently in Serbia, he expects.

"We shall see what the situation is going to be in two to three months. If new measures are needed, we will take them, but I hope the crisis will start weakening," Cvetković remarked.

According to him, the government made the projections for 2012 based on information from a month or two earlier, but the situation in the markets is changing and could be different in two months.

The crisis from the eurozone could spill over into Serbia through two main channels, by reducing foreign investments and by cutting down export due to lower demand in eurozone markets, Cvetković pointed out.

When it comes to attracting investors, 2011 was fairly successful for Serbia, with around USD 2 billion of direct foreign investments, he noted.

"I predict a continuation of the influx of foreign investments for 2012 and I believe we are going to have results at least equal to last year, and I hope a little more than that," Cvetković stated.

"We have several more large investors coming in. they do not normally like their names mentioned, but those are world names and I am certain they will start investing this year."

"Our development must now be mostly based on an export oriented economy, and export means you depend on outside markets," he stressed.