Fiscal Council: Restrictive fiscal policy should continue

Serbia’s Fiscal Council believe that the government should not loosen its restrictive fiscal policy too early and that increasing economic growth and employment calls for making more efforts to improve the investment climate.

Low economic growth, large fiscal deficit and fast-growing public debt and high unemployment are the biggest problems facing the Serbian economy, although certain improvements could be observed with these indicators in 2015, the Fiscal Council said in a document on economic recovery, employment and fiscal consolidation, and lessons learned in 2015 and prospects for 2016 and 2017, obtained by Tanjug.

Despite pointing out that economic recovery started last year, following the recession of 2014, the Council said economic growth would continue being low for a few more years as it would take several years to rectify the existing structural problems and increase the investment-to-GDP ratio.

Source: Tanjug