BELGRADE (Serbia), February 8 (SeeNews) - Serbian Economy Minister Mladjan Dinkic said on Monday the Balkan country is on track to emerge from recession in the first quarter of 2010, local media reported.
Dinkic also said that the Serbian economy will most likely grow by 1.5% this year, but that it could top that figure if the government takes the appropriate measures, news broadcaster b92 (www.b92.net) reported.
Serbia's economy is expected to have contracted by a real 2.9% in 2009 after growing by a real 5.5% in 2008, the country's statistics office said in January. Gross domestic product (GDP) fell by a real 2.3% on the year in the third quarter of last year and dropped 3.5% in the first nine months of 2009 compared to the same period of 2008.
Dinkic said that the decline in exports and weak domestic demand continue to be a drag on the economy and that the government should tackle them head-on.
Exports dropped 20% last year while imports fell about 28%. In December alone exports contracted 6.0% on the year, Dinkic said.
Except for loans earmarked for several infrastructure projects and for enterprises of strategic importance for the country, Serbia should avoid fresh borrowing, the government official added.
When it comes to the real economy, the state will take on debt only for the sake of large exporters and has already approved guarantees for a 135 million euro ($184.2 million) loan for copper mining and smelting company RTB Bor, he said.
According to Dinkic, the government will also negotiate with the European Investment Bank a credit line to increase the competitiveness and energy efficiency of Serbia’s largest petrochemicals producer, HIP Petrohemija.
($=0.7328 euro)
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