Q:
A:
Export growth to reduce deficit of current account deficit
Belgrade,
3 October 2012
Minister of Finance and Economy Mladjan Dinkic said today that the economic policy of the Serbian government is a combination of reduced state spending and the budget deficit, while creating the conditions for borrowing at the lower price and encouraging investment consumption.
Mladjan Dinkic
Author:
infobiro.tv
After the lecture of Nobel prize-winning economist Paul Krugman, Dinkic said that he shares the opinion of the Nobel Prize on what the state should do to overcome the crisis.
He said it is necessary to make a deal on the Chinese loan for motorway construction in the amount of €850 million, and announced that the budget for 2013 will put focus on social protection and investment in agriculture.
The Minister pointed out that he accepts Krugman’s suggestions that Serbia must stimulate export growth to reduce the deficit of the current account deficit.
According to him, the best way to do that is to bring multinational companies such as Fiat and expand the network of their suppliers in Serbia.
Dinkic stressed that economic and monetary policy should be viewed as a whole, rather than separately, and added that the central bank should take into account the stability of the financial system, a policy flexible exchange rate and reduced interest rates.
He said it is necessary to make a deal on the Chinese loan for motorway construction in the amount of €850 million, and announced that the budget for 2013 will put focus on social protection and investment in agriculture.
The Minister pointed out that he accepts Krugman’s suggestions that Serbia must stimulate export growth to reduce the deficit of the current account deficit.
According to him, the best way to do that is to bring multinational companies such as Fiat and expand the network of their suppliers in Serbia.
Dinkic stressed that economic and monetary policy should be viewed as a whole, rather than separately, and added that the central bank should take into account the stability of the financial system, a policy flexible exchange rate and reduced interest rates.
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