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Serbia offers high quality workforce, good tax system to investors
Belgrade,
4 June 2010
Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic stated today that he is convinced that the GDP growth rate this year will be higher than 2% and that in August the IMF will review its estimate of a GDP growth of only 1.5% for Serbia.
Author:
Tanjug
Opening the “International Business Sector in Serbia 2010” conference at the Hyatt Regency, Dinkic emphasised that he is optimistic and believes that the positive trend seen in the April and May economic growth statistics will continue over the coming months and into next year, leading to a better standard of living.
The April and May statistics show that the GDP growth rate was higher than in the first quarter of the year, noted Dinkic, adding that budget revenues were 6% higher during the first five months of 2010, when compared to the same period in 2009, while during the first four months of 2010 exports increased by 18%.
Serbia has advantages when it comes to foreign investment, given its geostrategic position, high quality workforce, good tax system, free trade agreements and macroeconomic and political stability, he observed.
Serbia’s weaknesses in this respect are inadequately developed transport and telecommunications infrastructure and complicated bureaucratic procedures, he pointed out.
The Minister reiterated that infrastructure is a precondition for attracting foreign direct investment, announcing that a tender for the construction of regional motorways Pojate–Preljina, Paracin–Bulgarian border and Sabac–Corridor 10 will be announced in June.
He explained that the construction of these regional motorways will be financed with funds obtained from the privatisation of Telekom Srbija. Dinkic announced that tenders for two more sections on the Belgrade–South Adriatic motorway, ie Lajkovac–Ljig and Obrenovac–Ub, will be announced before the year’s end in order to complete the Belgrade–Ljig section of the motorway by 2010.
He noted that the government will soon set aside funds from the budget for the construction of the southern branch of road Corridor 10 through the Grdelica Gorge, which was supposed to be built with funds from the Hellenic Plan.
Serbia will ask the European Investment Bank or the World Bank for the second portion of funds for this part of Corridor 10, he concluded.
The April and May statistics show that the GDP growth rate was higher than in the first quarter of the year, noted Dinkic, adding that budget revenues were 6% higher during the first five months of 2010, when compared to the same period in 2009, while during the first four months of 2010 exports increased by 18%.
Serbia has advantages when it comes to foreign investment, given its geostrategic position, high quality workforce, good tax system, free trade agreements and macroeconomic and political stability, he observed.
Serbia’s weaknesses in this respect are inadequately developed transport and telecommunications infrastructure and complicated bureaucratic procedures, he pointed out.
The Minister reiterated that infrastructure is a precondition for attracting foreign direct investment, announcing that a tender for the construction of regional motorways Pojate–Preljina, Paracin–Bulgarian border and Sabac–Corridor 10 will be announced in June.
He explained that the construction of these regional motorways will be financed with funds obtained from the privatisation of Telekom Srbija. Dinkic announced that tenders for two more sections on the Belgrade–South Adriatic motorway, ie Lajkovac–Ljig and Obrenovac–Ub, will be announced before the year’s end in order to complete the Belgrade–Ljig section of the motorway by 2010.
He noted that the government will soon set aside funds from the budget for the construction of the southern branch of road Corridor 10 through the Grdelica Gorge, which was supposed to be built with funds from the Hellenic Plan.
Serbia will ask the European Investment Bank or the World Bank for the second portion of funds for this part of Corridor 10, he concluded.
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