A strong economic recovery is underway, coupled with higher inflation. Forecasts say that Serbia will be among the fastest-growing economies in Europe this year as well. What is your opinion about the development of the Serbian economy and do you think that Serbia has already reached pre-pandemic GDP growth?
According to the latest reports of the WB and NBS, Serbia’s economic recovery is moving in the right direction, with a return in private consumption and an increase in total investments. Serbia’s external and fiscal positions must be much better than in previous crises. At present, despite the pandemic, Serbia is much more ready for the challenges we are facing within the international commodity and financial markets, including the monetary policy normalisation of leading central banks. We do hope that macroeconomic stability will be maintained in the medium term, while the inflation, which has accelerated in recent months, is expected to return to the National Bank of Serbia target range.
The Serbian economy started to show signs of recovery in the first half of 2021. Consumption was the main driver of growth, and the Serbian economy is expected to return to pre-pandemic growth levels. However, the country still faces disputes that limit its potential growth, both in the short and medium to long term. Most importantly, Serbia needs to do more to remove constrictions to private sector investment.
Topics that will be in focus in 2022 are the green agenda, climate change, changing the way we work, and a new technological impact. What are Serbia’s capacities to deal with these issues and where is our place in Europe and the world in that context?
Global steps concerning climate action are causing important adjustments in society. Consumer and investor preferences are changing, green technologies and new business models are reshaping more markets. As such, greening a country’s economy is becoming a crucial factor in international competitiveness and the ability to attract international finance and new investments. Further improvements are needed to align with best practices in the EU, which Serbia aspires to join.
To continue with the existing expansion and bring about a new one, deep decarbonization and a green transformation are needed, especially if we bear in mind the country’s key export market – the EU, where consumers are already favouring goods with a low carbon footprint. We should increase energy efficiency by renovating public and private buildings and by helping enterprises in Serbia to spend less energy in their production process. Increasing energy efficiency and using more renewable energy in the economy (including industries, buildings, transport sector) are the main vehicles for a clean energy transition, as they will not only create energy savings but also reduce emissions and air pollution.
We need to start working together on adapting to an already changing climate and to create a healthy living and working environment. It’s the only way to go, for the people, the economy and the planet.