BRNABIC: Serbia's economy stable, state to put RSD 25 billion more in capital investments

Serbian Prime Minister Ana Brnabic said today that the economy of Serbia was stable despite the outbreak of coronavirus and that there was no reason to panic, but that the state had decided to put an additional RSD 24 billion in capital projects in order to support economic activities and stimulate growth.

– The economy of Serbia is very stable at the moment. The Government will be ready to help keep this state so that our economy would suffer as little as possible – she said at a press conference.

She pointed out that “the situation is being followed minute by minute” and that the most jeopardized sectors in Serbia at the moment were tourism, transport and logistics.

– We are constantly having meetings and we will react per need and adopt adequate measures on time – Brnabic said.

She reminded that the Government of Serbia had decided to invest an additional RSD 24 billion, that is, more than EUR 200 million, in capital projects in order to stimulate growth and accelerate the implementation of the “Serbia 2020-2025” program.

She added that the pandemic would reduce the growth of the world economy by 0.5% by the most conservative estimates and said that, therefore, “an increase in private and public investments is the best way to address the slowing of the growth”.

According to her, it is therefore important that the National Bank of Serbia has brought the key policy rate down to 1.75% and that the corridor of basic reference interest rates has been reduced to 1%.

– Considering the low inflation pressures, we expect this measure to enable an increase in crediting and economic activities in the private sector – she said.

She reminded that it had been decided back in February for the state to enable the citizens to get another 60,000 tourist vouchers, as a response to the expected decrease in the number of foreign guests.

– We will have a meeting with all the hotel managers, who will present us with their problems, and we will see how to address this problem – the prime minister said.

Vlada Republike Srbije

Narodna banka Srbije Beograd

Government of Serbia

National Bank of Serbia

Ana Brnabić

coronavirus

increase in crediting

capital projects

growth of world economy

consequences to the economy