Economic advisor: GDP growth "will be higher"

Economic advisor: GDP growth "will be higher"

Krulj told Tanjug that Serbia had a five percent drop in the GDP because of the 2014 floods that was more than EUR 1.5 billion in nominal terms, and despite foreign financial assistance, we have paid for the greatest part of the reconstruction while simultaneously embarking on the fiscal consolidation measures, economic reforms and reforms of the public sector.

“For this reason, the World Bank has made this conservative assessment,” he said commenting on the assessment of this financial institution that Serbia will be the only country in the region with a 0.5 percent drop in the GDP in 2015.

Krulj, however, pointed out that early in February, the Kolubara surface coal field will start to work at full capacity, which will result in greater production of electricity.

“On the other hand, we will again have growth in the sectors such as agriculture, which has already produced a surplus, and this has not been taken into consideration,” he explained.

This year will see far less funds being allocated from the budget for subsidies, so much more funds will be attributed to budget savings, while public companies, which will undergo restructuring, will have a much better business result than now, Krulj said.

If the privatization process of Zelezara Smederevo by Esmark is successfully completed, and Krulj believes that it will be, and this factory begins to work at full capacity, we can expect it to contribute 1.5 percent to the GDP growth.

Krulj said that attention should also be attached to direct foreign investments, as already announced by German company Tenis, which is to invest in Serbia's meat processing industry, or Austrian Gerlinger holding, which intends to buy Zrenjanin-based Mitros.

“All these elements have not been taken into consideration because the conservative assessment does not allow this,” Krulj said.