Availability of workforce and inflation as the biggest challenges for companies

Serbia’s economic growth this year will be up to 3.5%, while inflation will slow down, but this is not enough to reach the average economic growth of European countries, it was concluded at the panel discussion called “Macroeconomic trends in 2024”, organized by NALED’s Alliance for Fair Competition with the support of the National Initiative for Cashless Payment.

Western Balkan countries need greater economic growth in order to catch up with the EU countries, said Peter Tabak, the EBRD’s chief regional economist.

“The growth could accelerate to 4 or 5%, but for that to happen, we need bigger investments, more efficient public administration and better management of public enterprises. Several years ago, a study was conducted that showed that improving the efficiency of state-owned enterprises to reach the level of private ones would lead to an increase in GDP by 2%,” Tabak said.

The preliminary results of NALED’s economic sentiment survey were presented at the event. The survey shows that only half of companies expect investment growth this year, while the biggest challenges for them are the availability of workforce and inflation. Companies also point out that laws related to work and employment, wage taxes, energy, construction and the environment should be the priority for the new Serbian government.  

Last year, both domestic and global economies showed great resilience, according to Miloš Zečević, Director of the Controlling and Accounting Department of Erste Bank. He stated that the monetary policy implemented by the National Bank of Serbia has led to lower inflation and that in late 2024, inflation could fall to around five percent. As far as fluctuations of the Euribor are concerned, he pointed out that there was a possibility of the Euribor dropping from the current 4 percent to 2.9 percent at the end of the year.

(Biznis i Finansije, 28.01.2024)


This post is also available in: Italiano

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