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The Government of the Republic of Serbia

In the service of citizens

Serbia’s GDP per capita to increase to €7,000 by the end of the year

Belgrade, 17 July 2008

Serbian Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic said today that Serbia’s GDP per capita should reach €7,000 by the end of the year.

In an interview to the Tanjug news agency, Dinkic said that every year of approximation to the EU will bring economic growth, in which process Serbia will have to attract between $5 billion and $8 billion in foreign direct investment every year.

To that end, the Ministry has prepared a proposal of a new decree that envisages that the state will cover up to 25% of the investment value for strategic investors who invest more than €200 million and employ over 1,000 people, Dinkic explained.

This special benefit does not exist in any other country in south-eastern Europe and will be in force only until 2010. Our idea is to help big companies that come on the Serbian market, for the first time, with these benefits. Later on, there will be no more need for such incentives.

Dinkic said that the government submitted to Serbian parliament the energy agreement with Russia and the Stabilisation and Association Agreement (SAA) with the EU, which guarantees more investments to Serbia, for initialling.

We will show the speed and efficiency of the new government in closing the agreement with Fiat. The closing negotiations with representatives from Italy have begun today and they submitted to us a large quantity of documentation and projections for the future development of the company, he said and added that that will be the first big investment by a foreign company in Serbia since the beginning of transition.

Speaking about the energy agreement with Russia, the deputy prime minister said that after its initialling in the Serbian parliament, the government will inform Russia that it is necessary to reach an agreement as soon as possible that will enable quick implementation of the energy agreement.

He said that the government will try to reach agreements with Russia concerning the construction of the Southern Stream gas pipeline, underground gas storage in Banatski Dvor and privatisation of the Serbian oil industry “Naftna Industrija Srbije” that will produce maximum results both for Serbian and Russian economies.