Serbia's Economy Faces Major Challenges

The country has taken a number of steps to establish a stable market economy over the past decade. The privatization of state-owned companies continues today, and more than 1700 companies have been sold over the past decade.Gross domestic product growth in the country has averaged some four per cent over the past ten years, a rate two times higher rate than in most West European countries.

Despite certain improvements to the country's economy, many analysts say that that Serbia's post-Milosevic governments have failed to fulfil citizens' expectations. The average salary in Serbia in 2010 stands at around 300 euros, and the unemployment rate in the country is about 19 per cent.
Economist Sasa Djogovic told Balkan Insight: “The country's standard of living is better compared to the 1990s, but that still doesn’t mean it’s good. With the average salary in Serbia you cannot afford the average food basket. While in other countries people spend 15 per cent of their income on food, in Serbia citizens have to spend 41 per cent.”

In the past ten years, net inflow of foreign direct investment is estimated to stand at USD 15.7 billion. A significant portion of that total has been earned through privatization.

News source: Balkan Insight link: article