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A:
Structural changes are priority of next year’s economic policy
Belgrade,
21 December 2004
Serbian Deputy Prime Minister Miroljub Labus said that structural changes, which represent the second phase of privatisation in Serbia, are a priority in the economic policy for the next year.
Miroljub Labus
Author:
Fonet
At a meeting of the Scientific Association of Economists, which focuses on economic policy and development in 2004/2005, Labus said that eight large public companies will be restructured in the next period.
He noted that this year’s economic growth totalled 6.5 percent, adding that 1998’s level has not been achieved yet as the country has not recovered from 1999 NATO bombing shock.
Labus said that GDP growth in 2004 will amount to 8.5 percent, representing the greatest of the last 25 years.
The Deputy Prime Minister said there will be no major corrections in prices next year since around 23 percent of prices are still controlled by the government. He said there will be no increase in the price of electricity, but that it will not be imported either.
Labus announced the enactment of new laws on trade, both foreign and domestic, as well as an antimonopoly law. He added that privatisation of the banking sector will continue.
Public companies will have to improve productivity and to submit a three-year plan to the government if they want to receive its support.
Minister of Finance Mladjan Dinkic announced a new arrangement with the International Monetary Fund. He also said that a $700 million debt will be written off, thus reducing the total public debt below 10 percent of GDP, a precondition for EU accession.
Dinkic said that total public debt amounts to 55 percent of GDP at the moment, which is one-third the level when compared with 2000. Budgetary deficit has been reduced to below 2 percent, while next year’s budgetary deficit is projected at 1.4 percent, he said.
The growth of salaries amounted to 10 percent this year, he said. Foreign currency reserves reached $4.1 billion, Dinkic said, adding that 2005 inflation will not be above 9.1 percent. The Finance Minister also said that salaries in public services will be in line with productivity.
The two-day meeting, which continues on Wednesday, brings together economists, bankers and businesspeople for discussions on economic policy and development in 2004/2005. It has been organised the Scientific Association of Economists and the Serbian Chamber of Commerce.
He noted that this year’s economic growth totalled 6.5 percent, adding that 1998’s level has not been achieved yet as the country has not recovered from 1999 NATO bombing shock.
Labus said that GDP growth in 2004 will amount to 8.5 percent, representing the greatest of the last 25 years.
The Deputy Prime Minister said there will be no major corrections in prices next year since around 23 percent of prices are still controlled by the government. He said there will be no increase in the price of electricity, but that it will not be imported either.
Labus announced the enactment of new laws on trade, both foreign and domestic, as well as an antimonopoly law. He added that privatisation of the banking sector will continue.
Public companies will have to improve productivity and to submit a three-year plan to the government if they want to receive its support.
Minister of Finance Mladjan Dinkic announced a new arrangement with the International Monetary Fund. He also said that a $700 million debt will be written off, thus reducing the total public debt below 10 percent of GDP, a precondition for EU accession.
Dinkic said that total public debt amounts to 55 percent of GDP at the moment, which is one-third the level when compared with 2000. Budgetary deficit has been reduced to below 2 percent, while next year’s budgetary deficit is projected at 1.4 percent, he said.
The growth of salaries amounted to 10 percent this year, he said. Foreign currency reserves reached $4.1 billion, Dinkic said, adding that 2005 inflation will not be above 9.1 percent. The Finance Minister also said that salaries in public services will be in line with productivity.
The two-day meeting, which continues on Wednesday, brings together economists, bankers and businesspeople for discussions on economic policy and development in 2004/2005. It has been organised the Scientific Association of Economists and the Serbian Chamber of Commerce.
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