EUCham survey: Serbia and its economic recovery plans
The pandemic is testing the ability of governments to provide effective responses to the economic crisis. Countries that have spent huge amounts of money may recover faster but will also face large financial debts.
A study carried out by the European Chamber, with the help and contribution of the governments of different European countries, including Serbia, compares the financial spending of 46 governments in search of the long-awaited economic recovery from the crisis caused by COVID-19 .
The differences in spending between 46 countries on the same continent suggest the great disparities in the answers given.
The significant variability shown in these figures raises questions. Since we must keep in mind that a large part of these figures correspond to loans that will have to be repaid, have the countries which have spent the most done well?
Patricia Lojo, researcher for this comparative analysis, says: “The government of Serbia spent more than its neighbors North Macedonia and Bulgaria, but much less than other countries like Italy and Italy. ‘Germany’.
The OECD says Serbia is one of the countries least affected by the COVID-19 crisis and one of the states with the most people vaccinated. Michele Orzan, President of the European Chamber with in-depth knowledge of Eastern and Central Europe, notes: “Serbia only experienced a moderate contraction in its GDP in 2020, and it expects growth of about 5% this year, higher than that of its neighbors. listed above. This can be partially attributed to the emergency measures implemented by the government to mitigate the negative economic effects of the COVID-19 crisis.
However, “it is not who spends the most, but who spends the most intelligently”, specifies Orzan, adding the following reflection: even more negative than what they are currently experiencing ”.
Following the approval by the Serbian government of financial aid programs to assist SMEs as part of its long-term economic plan, the higher growth expected may show that appropriate choices have been made.
In order to have a fair comparison between the different economies, the absolute amounts have also been recalculated in euros and in relation to their respective 2019 GDP (Gross Domestic Product).
|Relative expenses||Absolute expenses|
|Italy||47%||766 billion euros|
|Germany||30 %||941 billion euros|
|Serbia||17%||7 billion euros|
|North Macedonia||12%||1 billion euros|
|Bulgaria||4%||5 billion euros|
The financial spending and efforts of governments differ greatly from country to country, and this will be one of the factors that will influence the recovery and what the well-being of their economies will look like in the future.
In order to better understand these figures, the amounts can be compared from different angles, for example in expenditure per capita:
|Per capita expenditure|
|Italy||12 665 EUR / inhabitant|
|Germany||11,235 EUR / inhabitant|
|Serbia||835 EUR / inhabitant|
|North Macedonia||553 EUR / inhabitant|
|Bulgaria||333 EUR / inhabitant|
The governments of these countries will need to demonstrate why there are such big differences between countries, especially when money provides the desired benefits or not.
The comprehensive survey of 46 European countries to eucham.info
Source: European Chamber of Commerce
This article is also available in: Italiano