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The Government of the Republic of Serbia

In the service of citizens

Positive economic growth in 2015

Belgrade, 5 January 2015

Prime Minister Aleksandar Vucic said that the government's goal is for Serbia to achieve positive economic growth in 2015, and the privatisation of the Smederevo steel mill and a significant increase in public investments should contribute to this.

Author: Tanjug

The International Monetary Fund (IMF) has forecast that Serbia will end 2015 with a negative economic growth of minus 0.5 percent, but I expect a growth of over 0.5%, maybe even 1%, Vucic said in an interview published by the Belgrade-based daily Alo today.

To achieve this, the issue of the Smederevo steel mill and the chemical complex - the nitrogen plant, the methanol and acetic acid complex and the petrochemical plant – needs to be solved, Vucic said.

Since the deadline for submitting bids to privatise the steel mill expired on Monday, the prime minister said that the outcome should become known on 8-9 January.

More success is needed in the process of privatisation and establishing joint companies such as the FAP truck plant in Priboj and the Prva Petoletka hydraulic pumps and engines factory in Trstenik, Vucic said.

In addition, to achieve the anticipated growth, much greater investments are needed in 2015, the Serbian prime minister explained.

First of all, this includes launching the construction of the high speed rail line from Belgrade to Budapest, completing Corridor 10 and Corridor 11, as well as launching the Belgrade Waterfront project, Vucic said.

I also expect significant investments in the energy sector, in particular for the construction of a block at the Kostolac thermoelectric power plant, he said, adding that public investments should be significantly greater than in 2014.

The Prime Minister said that he met with a high-ranking Chinese delegation on Sunday to discuss the elaboration of a feasibility study for the rail line to Budapest, and added that he will discuss this with the authorities in Budapest on Tuesday to ensure that everything is in compliance with European standards and regulations.

At the same time, the first geodetic works will be conducted on the Serbian section of the route to ensure that construction can start before the end of the year, Vucic said.

There are also plans to sell Telekom Srbija in 2015, he said, adding that he expects that the best possible sale price will be achieved.

The money from the sale will not be used to cover budget losses – half of it will be used to repay the worst loans, with the other half to go to direct investments, the prime minister said.

The government has reached an agreement on this with the IMF, Vucic said, noting that Serbia must maintain the arrangement with the IMF as it is a guarantee of its future and stability.