Economists today assessed that some of the results that the Government of Serbia has achieved in a year of work in the conditions of a pandemic are good, but that they are not impressive.
Professor at the Faculty of Economics in Belgrade, Ljubodrag Savic, said that the Government of Serbia had achieved more than it expected in difficult circumstances and that it had done well, but that it was far from impressive results because no country in the world had succeeded.
Prime Minister Ana Brnabic said today, on the occasion of a year of government work, that “impressive results have been achieved in difficult circumstances” in the sector of fighting the pandemic (health), fighting organized crime, European integration and the economy.
“The government managed to allocate a package of aid to the economy and citizens in the amount of 14 percent of gross domestic product (GDP) from the budget in two years, without the public debt exceeding 60 percent of GDP. We are going through a pandemic much better than more organized countries,” he said. is Savic.
According to him, public investments have increased by about six to seven percent and reached about 23 percent of GDP, but even less than in the countries of Central and Eastern Europe, where they are from 25 to 28 percent of GDP.
He pointed out that the construction of roads is a “great thing” because Serbia was a bottleneck when it comes to rail and road traffic, but that the objection is why domestic companies no longer participate in construction, as well as delays in construction on some sections due to project documentation and expropriations.
Professor at the Fefa Faculty in Belgrade, Goran Radosavljevic, said that no results had been achieved in the fight against the pandemic, organized crime and European integration, and that certain results had been achieved in the economy, but the question was how sustainable they were.
“There are no results in the fight against kovida-19 because the mortality of citizens is high, in the fight against organized crime the situation is never worse because we have experienced that the president (Aleksandar Vučić) defends a suspect in marijuana cultivation, eavesdrop on him and that, as they claim, there are constant attempts to assassinate him, but there is no epilogue, “Radosavljevic said.
He added that there were no opening of new chapters in the process of European integration, while certain results were achieved in the economic sphere, and that is a small drop in the gross domestic product (GDP) last year and a growth of seven percent this year.
When, as he said, one looks at the source of that growth, it can be concluded that it comes from investments in infrastructure, financed by expensive, bilateral loans, without tenders.
Radosavljevic said that the GDP growth of ten percent is based on the construction sector, and that when you look at the structure of consumption, he concludes that about five billion euros comes from turnover in the real estate sector, so the question remains unanswered where such an enormous amount of cash comes from.
He said it remains to be seen whether economic growth of seven per cent this year is a trend or the result of a low base in the previous year.
If the value of GDP of 52 billion dollars is reached this year, according to him, that will not be commendable either, because that value was achieved in 2008.
“I hope that inflation will be kept under control and that Serbia will go through the energy crisis without major shocks, and that it will not happen that it has all the energy sources, so that it turns out that there are none,” said Radosavljevic.
He added that “this government was short-lived and was only preparing for the next election cycle.”