Pavle Petrovic, President of the Fiscal Council of Serbia, has said that the trend of economic growth in Serbia is 3% and that the “World Bank’s forecast that it could reach seven percent is premature.”
“The potential economic growth in Serbia is five percent, I think that the World Bank got carried away because it is a high rate for Serbia,” Petrovic said at the presentation of the research of the German-Serbian Chamber of Commerce about doing business in Serbia. According to him, the problem of Serbia is insufficient public investments, which reach 18 percent, while in the countries of Central and Eastern Europe they reach 22% on average. He pointed out that the basic prerequisites for economic growth are legal security, i.e. institutions, education, investment rates and technology progress.
“The business environment in Serbia has not changed since 2008, politicians do what gives immediate results, because the establishment of institutions takes years, but it produces significant results and if Serbia reached the level of Bulgaria or Romania, this would increase economic growth by 0.5 percent,” Petrovic said.