How does the former governor of the NBS evaluate HELP to citizens and the economy?

How does the former governor of the NBS evaluate HELP to citizens and the economy?

Professor at the Faculty of Economics in Belgrade Dejan Soskic He said that one of the components of the package of aid to citizens and the economy in Serbia is giving money linearly, indiscriminately to everyone, both those who have salaries and pensions and whose crown has not endangered their existence, a questionable move, which can hardly be justified from an economic point of view.

Soskic told N1 that he was the one move under question, especially for countries such as Serbia, which have a high public debt relative to gross domestic product (GDP) and social support systems that have existed there since ancient times, such as health care, which should be available to most citizens.

These linear benefits are difficult to justify from an economic point of view and they will cause new borrowing by the country“, Said Soskic and added that last year Serbia set out on the path of raising public debt in relation to GDP, and that this package continues.

He estimated that he would by the end of the year, the level of public debt to GDP will exceed 60 percent, which is the level that developed countries have set for themselves as a limit.

“Countries like Serbia should be at a lower level of public debt,” said Soskic, who is also the former governor of the National Bank of Serbia.

“We can’t even talk about economic expansion”

He pointed out that an additional problem is that two years ago the methodology in the calculation of GDP was changed, and that according to the old methodology, public debt has long been over 60 percent.

Asked whether there were any comments that the economic situation was stable or better than in the previous period, Soskic said that Serbia was practically one of the most stagnant economies in Europe until 2018.

“We had far lower economic growth rates. From 2018, 2019, the rate of economic growth is slightly higher, and last year we may have had a slightly lower rate of economic decline, but we cannot talk about the expansion of the economy. We have not progressed anywhere, we are far from higher rates of economic growthHe said.

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On the occasion of the announcement of the authorities that the first quarter will be with a positive rate of economic growth, Soskic said that he did America made a positive result of 6.4 percent, and China over 18 percent in the first quarter.

“If Serbia makes a result of plus one, we are far from economic expansion and there is no talk of champion status. Serbia is one of the poorest countries in Europe“, Said Soskic.

Assessing the economic situation in the country, he pointed out that Serbia does not have enough investments and that domestic businessmen are not confident enough in the business perspective and do not believe in the institutions of the system, nor in the absence of corruption.

About help for the vaccinated

Regarding the announcement of the President of Serbia, Aleksandar Vučić, about additional financial assistance for those who were vaccinated for 3,000 dinars, Šoškić said that this is the entry into the domain of basic human rights, whether someone wants to be vaccinated or not.

He estimated that he would the better way was – a higher level of awareness among citizens and better access to education on the importance of vaccination.

Source: Beta

Photo: Beta


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