The European Bank for Reconstruction and Development (EBRD), the largest institutional investor in the Western Balkans, presented its flagship Transition Report 2024-25: navigating industrial policy
The Governor of the National Bank of Serbia, Dr Jorgovanka Tabaković, delivered welcoming remarks. She was followed by EBRD Regional Director for the Western Balkans, Matteo Colangeli, who spoke about the Bank’s work in the country. Peter Sanfey, the EBRD’s Deputy Director for Country Economics, discussed Serbia’s recent economic developments and growth prospects, and Cevat Aksoy, Senior Research Economist in the Office of the Chief Economist, presented the 2024-25 edition of the report.
This year’s report focuses on industrial policies in the EBRD regions and beyond. Such policies have seen a resurgence, seeking to address market failures such as environmental degradation. Their growing popularity is shaped primarily by domestic political economy considerations and rising geopolitical tensions. While industrial policies are typically employed by higher-income economies, they are also now used more frequently in economies with less administrative and fiscal capacity to implement them. The report provides a rich characterisation of industrial policies in the EBRD regions and beyond using several novel datasets. It offers several principles that can increase the chances of success. The full report is available here.
Dr Jorgovanka Tabaković stated: “Instead of merely stating principles, we have committed to implementing the principle of action. I believe that the best way to reduce all forms of inequality is by safeguarding the country’s stability. Let us not forget that achieving an investment-grade credit rating is the result of both sound political and economic decisions, as these two aspects are inseparable. Every missed opportunity for growth means additional time needed to return to the growth trajectory we have secured, which includes rates above 4 per cent. We must preserve stability, as even the best industrial policy cannot yield sustainable results without it.”
Matteo Colangeli said: “Serbia continues to be one of the Bank’s most important countries of operation, with an active portfolio exceeding €3 billion for the first time. In 2024 we delivered another year of high investment volume – over €800 million – a record number of projects and a strong focus on the green economy transition. With our growing regional hub in Belgrade, we are well positioned to further scale up our operations in the country and foster a more competitive, resilient and sustainable economy in Serbia”.
The EBRD is the leading institutional investor in Serbia and has invested more than €9.8 billion through 3745 projects to date. The Bank invested €807 million in Serbia last year, continuing to increase its activities in the country. The Bank’s focus in Serbia is on private-sector competitiveness, the green economy transition and sustainable infrastructure.