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Serbia needs new economic model in 2011

03. January 2011. | 07:01

Source: Tanjug

Higher investments, faster opening of new production plants and jobs, export boost as well as reduction of budget expenditures and all other expenditures incurred by the state make up a model which would enable Serbia's fragile economy to overcome another difficult year, the government officials, prominent experts and businessmen claim.

Higher investments, faster opening of new production plants and jobs, export boost as well as reduction of budget expenditures and all other expenditures incurred by the state make up a model which would enable Serbia's fragile economy to overcome another difficult year, the government officials, prominent experts and businessmen claim.

The resolution of the economic crisis, such as the one that Serbia is facing, demands greater care for the vulnerable citizens.

The necessary support to the vulnerable citizens is not only an additional burden for an already stretched budget, but also a great motive for all creators of Serbia's economic policy to find a more successful economic model and apply it fast and efficiently.

The fact that Serbia recorded a small growth in the Gross Domestic Product (GDP) of about 1.5 percent in 2010 proves that, technically speaking, Serbia has exited recession, but that still does not mean that the country has overcome the crisis.

Moreover, the crisis will not be tacked in 2011 through the projected economic expansion of tree percent, unless the annual growth rate is stabilized at six to seven percent.

Economists say that such a positive development in the Serbian economy cannot be expected before 2012 when the world economy gets fully stabilized and the global growth rate records a considerable increase.

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