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Mercedes-Benz

Speed, Power and Luxury

Even with increased ground clearance, Mercedes-Benz vehicles from the AMG line never compromise on their sporting pedigree. Exceptional design, unique performance, comfort and unquestionable...

Bonnie Norman and Rob Russo, E3 International

Sustainable Energy for a Resilient World

We deliver sustainable energy strategies and solutions that benefit enterprise bottom lines, increase energy security, enhance electricity grid stability, support local and national government...

Vladan Krsman, Chief Technology Officer - Digital Grid, Schneider Electric Serbia

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Vladan Krsman from Schneider Electric Serbia, in his authored piece for CorD, discusses the development of One Digital Grid Platform — an innovative software...

Lidl Srbija KD

Food For a Better Tomorrow: Lidl’s Strategic Commitment

Awareness that our dietary choices are becoming a key factor in safeguarding human health and protecting the planet for a shared “better tomorrow” is...

Public Policy Research Centre (PPRC)

Decline in Gig Workers in Southeast Europe

In the first half of 2025, the number of gig workers continued to decline due to a combination of global economic uncertainty, market saturation,...

Branimir Jovanović, Economist at the Vienna Institute for International Economic Studies

Not the Right Time To Save

GDP growth stats don’t mean much in these kinds of crises, because the majority of people are living worse than before in spite of GDP growing. Considering that prices are continuing to rise in Serbia, it is highly likely that the wave of protests that started recently could become even bigger from the coming autumn, particularly if the government fails to raise salaries and pensions

Our institute’s projections are that Serbia’s economic growth will probably be even lower, no more than 1.5%. The country’s GDP even fell in the first quarter of this year compared to the previous quarter, which happened for two main reasons. The first is that inflation was excessively high, at close to 15%, which reduces purchasing power and thus also household consumption. The second reason is weak government spending, which additionally slowed down the economy. The government needs to address these two things in order to stimulate the economy. It firstly needs to increase its spending, as it did during 2020, at the start of the pandemic. And it secondly needs to raise all types of income that it has an impact on – such as public sector wages, pensions and social assistance – in order to encourage consumer spending.

When it comes to living standards, it should be noted that this crisis is specific in that it doesn’t impact all people in the same way. Rising prices mean higher living costs for some, but higher profits for others. Of course, the first group has far more members and they include almost everyone who lives from their work, and that accounts for 95% of people. That’s why GDP growth stats don’t mean much in these kinds of crises, because the majority of people are living worse than they were before despite GDP growing. That creates dissatisfaction that can easily turn into protests, which we are even seeing in countries that are known for their socialist qualities, like France. Considering that prices are continuing to rise in Serbia, it is highly likely that the wave of protests that started recently could become even bigger from the coming autumn, particularly if the government fails to raise salaries and pensions.

It wouldn’t be good for the state to decide to start saving and fail to increase salaries and social transfers, for EU integration to reach a standstill and for reforms to be abandoned, as that would undoubtedly lead to stagnation

As for foreign investments, these protests don’t mean much to them, as they do not disrupt their operations. Geopolitical issues are much more important to them, first and foremost whether Serbia is moving towards the EU or the East. There were numerous dilemmas in this regard with the outbreak of the war in Ukraine last year, which is why we saw a decline in foreign investments from the EU. It seems to be becoming clearer this year that Serbia still wants to take the road to the EU, which is why foreign investments recorded growth of more than 50% in the first five months of this year. When it comes to the end of this year and next year, the best-case scenario is for people’s earnings to increase, for the state to intensify its spending in order to stimulate the economy, for doubts about Serbia’s European path to be overcome and thus foreign investments to increase, and for reforms to be implemented in order to support domestic investment. In such a case, economic growth could reach 3% by as early as next year. The worst-case scenario would be for the state to start saving and fail to increase salaries and social transfers, for a standstill in EU integration to be reached and for no reforms to be implemented. In such a case, Serbia would face economic stagnation, with growth of around 1%.

Comment by Zoran Panović

One Step Forward, Two Steps Back

Former European Commission President Jean-Claude Juncker’s statement that Serbia had “travelled an impressive part of the path” towards the EU, and his encouragement (short...

Duško Lopandić Ph.D., diplomat

Dangerous Games

A policy without strategic direction resembles geopolitical Russian roulette—it erodes trust in Vučić and, in the long run, threatens Serbia’s security and international standing The...

Ivica Mladenović, Political Sociologist

With a Little Help from Our ‘Friends’

Strategic and economic interests – such as the Jadar lithium project – continues to drive EU support for stable authoritarian governance in Serbia. A...

Dr Srećko Đukić, Ambassador, Forum for International Relations, Belgrade

From One Misstepto Another – and Back Again

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EBRD Backs Serbia’s Clean Air Agenda

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Eurospin Enters Serbia

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Air Serbia Adds Mykonos to Its Summer Network

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US and China to Resume Trade Talks in London

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Ecuador and Brazil Seal 2026 World Cup Berths as Qualification Race Heats Up

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Eurospin Enters Serbia

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Air Serbia Adds Mykonos to Its Summer Network

Air Serbia has launched a new direct route between Belgrade and the Greek island of Mykonos, with the first...

US and China to Resume Trade Talks in London

In a high-stakes diplomatic turn, Chinese Vice Premier He Lifeng is set to meet top U.S. officials in London...

EBRD Backs Serbia’s Clean Air Agenda

In a move poised to reshape Serbia’s environmental trajectory, the European Bank for Reconstruction and Development has granted a...

Ecuador and Brazil Seal 2026 World Cup Berths as Qualification Race Heats Up

With just under two years to go until the expanded 2026 World Cup kicks off across North America, thirteen...

Eurospin Enters Serbia

The Italian discount retail chain Eurospin, through its company Eurospin EKO, is officially entering the Serbian market. According to the...

Air Serbia Adds Mykonos to Its Summer Network

Air Serbia has launched a new direct route between Belgrade and the Greek island of Mykonos, with the first...

US and China to Resume Trade Talks in London

In a high-stakes diplomatic turn, Chinese Vice Premier He Lifeng is set to meet top U.S. officials in London...
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