Q:
A:
Serbia is leader of Southeast Europe in economic growth
Belgrade,
12 December 2006
Senior economist of the European Bank for Reconstruction and Development (EBRD) Peter Sanfey said today that Serbia is leader in economic growth in 2006 in Southeast Europe, which is estimated at 6.5%.
Peter Sanfey
Presenting EBRD’s “2006 Transition Report”, Sanfey said that Serbia’s further economic growth is not surprising as six years ago its starting point was low.
He noted that with €4 billion of foreign investment in 2006 Serbia is second only to Romania in the region as Romania attracted €8 billion of foreign investment this year whereas the whole Southeast European region received almost €20 billion in investments.
Sanfey noted that it is necessary to establish a balance between the need to invest in infrastructure and maintain macroeconomic stability as well as to limit excessive consumption growth.
According to him, significant structural and macroeconomic changes lie ahead for Serbia. He also warned that the high level of consumption and large deficit of the current payment balance could become a problem when the influx from privatisation and investment decreases.
Sanfey said that part of the economic growth in Serbia is due to the development of the financial sector, with Serbia’s progress this year being somewhat slower than in 2005.
Privatisation and restructuring of large public companies should be speeded up, he said and noted that implementation of laws, especially the one on bankruptcy, should be improved. He also said that talks on the country’s Stabilisation and Association Agreement (SAA) should continue as soon as possible.
Director of EBRD in Belgrade Dragica Pilipovic-Cefi said that this bank invested €273 million in Serbia this year, including €70 million worth of recapitalisation of Komercijalna Banka.
He noted that with €4 billion of foreign investment in 2006 Serbia is second only to Romania in the region as Romania attracted €8 billion of foreign investment this year whereas the whole Southeast European region received almost €20 billion in investments.
Sanfey noted that it is necessary to establish a balance between the need to invest in infrastructure and maintain macroeconomic stability as well as to limit excessive consumption growth.
According to him, significant structural and macroeconomic changes lie ahead for Serbia. He also warned that the high level of consumption and large deficit of the current payment balance could become a problem when the influx from privatisation and investment decreases.
Sanfey said that part of the economic growth in Serbia is due to the development of the financial sector, with Serbia’s progress this year being somewhat slower than in 2005.
Privatisation and restructuring of large public companies should be speeded up, he said and noted that implementation of laws, especially the one on bankruptcy, should be improved. He also said that talks on the country’s Stabilisation and Association Agreement (SAA) should continue as soon as possible.
Director of EBRD in Belgrade Dragica Pilipovic-Cefi said that this bank invested €273 million in Serbia this year, including €70 million worth of recapitalisation of Komercijalna Banka.
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