Impact of global economic crisis on Serbia’s economic development
The global economic crisis strongly affects economic slowdown in the world due to the effects of reduced demand in developed economies. The fall in demand in the European market had a negative impact on Serbia’s foreign trade and economic growth. The reduction in export demand, reduction of...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Institute of International Politics and Economics, Belgrade
2015-01-01
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| Series: | Međunarodni Problemi |
| Subjects: | |
| Online Access: | http://www.doiserbia.nb.rs/img/doi/0025-8555/2015/0025-85551501106P.pdf |
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| Summary: | The global economic crisis strongly affects economic slowdown in the world
due to the effects of reduced demand in developed economies. The fall in
demand in the European market had a negative impact on Serbia’s foreign trade
and economic growth. The reduction in export demand, reduction of industrial
production, the company in default, wage cuts and rising unemployment are the
main features of the crisis that has engulfed Serbia. Serbia needs structural
reforms at all levels in order to increase the competitiveness of the
economy, which is now at a low level. In the last decade Serbia’s economic
development based on the integration in European and global markets and
foreign direct investment. An additional impact of crisis in Serbia was a
significant shortage of foreign capital. The decline and fall of the
investment trust in the banking system, manifested by withdrawal of foreign
funds from the financial system and reduce foreign exchange liquidity. The
recovery of Serbian economy can be expected by introduction of new reforms,
economic measures. In addition to reducing the fiscal deficit and savings, it
is expected a creation of favorable business environment for investment and
business. Political and economic stability is the basis for attracting
foreign direct investment. [Projekat Ministarstva nauke Republike Srbije:
Srbija u savremenim međunarodnim odnosima: Strategijski pravci razvoja i
unapređivanje položaja Srbije u međunarodnim integracionim procesima -
spoljnopolitički, međunarodni ekonomski, pravni i bezbednosni aspekti] |
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| ISSN: | 0025-8555 |