Soskic: Investment level still low

The Belgrade Faculty of Economics professor Dejan Soskic warns that the European Commission has been right to warn that the level of investments was too low for any kind of significant economic growth in their report of Serbia’s progress.

– Serbia needs investments larger than a 25% share of the GDP in order for the economic growth rate to exceed 2.5%. Regional countries – Macedonia, Bosnia and Herzegovina and Albania – have had a considerable growth this year, as they most probably will the next year as well. Growth rates, that are sustainable in the long term, will solve the problems of the budget deficit and the public debt – Soskic said.

According to him, the EC progress report is quite objective and warns of unfinished reforms of the judiciary, the public administration and the fight against corruption.

– There are also serious flaws, as noted by the EC, regarding the rule of law, while the unemployment rate and the public debt are still high – Soskic said.

He added that it was a good thing, as the EC had noted, that the budget deficit had been reduced and that the reforms in public enterprises had started, adding there was still room for improvement in the SME segment.

– The business environment is unpredictable, the parafiscal charges are high, and the incentives for small and medium enterprises are insufficient – Soskic said.

(eKapija, 14.11.2016)

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