Serbia’s economic growth is below its potential level due to weak institutions, especially the rule of law and corruption control, and it is the biggest economic problem, the Fiscal Council of the Government of Serbia said.
As it is stated in the analysis of the Fiscal Council “Why Serbia’s economic growth is lagging behind”, another factor that hampers economic growth is low investments, especially private ones that are insufficient, primarily due to poor rule of law and high corruption.
In the analysis which will be presented at the Kopaonik Business Forum, the Fiscal Council says that economic growth is also slowed down due to the shortcomings in the education system.
“Serbia’s economy is currently growing almost two percentage points below its potential, i.e. slightly above three percent, instead of the potential five percent,” said the Fiscal Council.
According to this analysis, half of the lagging behind, i.e. one percentage point, can be explained by the weak rule of law and high corruption, while the other half comes from low investments (0.7 percentage points) and shortcomings in the education system (0.2 percentage points).
“Reforms in the field of the rule of law and fighting corruption, as well as reform of education – these are the basic preconditions for Serbia to realize its potential growth,” the Fiscal Council said.