Working Together For Sustainable And Faster Growth

Serbian growth has been volatile and not as high as desired. Therefore our just completed new Country Strategy focuses on removing Serbia’s obstacles to growth. It promotes better governance of state enterprises and state administration, more inclusive policies toward youth, and women and green growth.

DANIEL BERG EBRD director for Serbia

One of the key challenges Serbia has to address is a problem known as the „middle income trap“. We spoke with Mr. Daniel Berg, EBRD director for Serbia about the newly promoted EBRD Country Strategy which hast to help Serbia to overcome this challenge and achieve higher growth. Serbia must accelerate its growth trajectory but in a sustainable way and then the country will proceed in convergence with Europe.

Are you one of those people who are eagerly waiting for Serbia to sign a new arrangement with the IMF, or do you think that the government has been pursuing a disciplined economic policy? — I believe that Serbia should remain engaged with the IMF after successfully completing the previous 3-year Stand-By Arrangement. This is not for the sake of having funds available, but more for the guidance and policy support which the IMF can provide. International markets consider the positive relationship with the IMF as an anchor for stability and promoter of reform policies. Other IFIs, such as EBRD, can work cooperatively on projects which are highlighted in the IMF programme.

One of the most discussed topics is Serbia is achieving a much faster economic growth than the current one. What would be the key steps towards accomplishing this goal? — We have just completed our new Country Strategy for Serbia which is designed to address Serbia’s transition gaps and obstacles to growth. Growth has been volatile and not as high as desired, in order to put Serbia on a convergence trajectory with the rest of Europe. Some of the measures and investments foreseen in our Country Strategy would help Serbia to achieve higher growth and to escape the so called „middle income trap“.