After 100 days in office, the new Government of Serbia, led by Prime Minister Đuro Macut, has introduced several economic measures such as increasing the minimum wage and public sector salaries, and continuing infrastructure investments. However, experts note that behind the appearance of stability lie unresolved challenges like costly megaprojects and the absence of deep reforms.
Economist Veljko Mijušković states that the government has focused on living standards, investments, and fiscal stability, but lacks the capacity for rapid reforms in areas like administration, taxation, and the judiciary. He highlights the increase in the minimum wage, which rose by 13.7 percent in January and will rise by an additional 9.4 percent in October, totaling a 23.1 percent increase in 2025. Public sector employees saw an eight percent salary increase, with educators receiving even more, resulting in a projected 22.4 percent rise.
Despite wage growth, public finances remain under pressure due to high expenditures and rising debt. Interest payments on public debt in 2025 are expected to reach 1.9 billion euros. The fiscal deficit is estimated at around three percent of GDP, with public debt growing from 39 to 42 billion euros.
Mijušković also warns that expensive projects like EXPO 2027 and the National Stadium are causing budget strains and delaying other investments such as the Belgrade metro. Structural weaknesses in the economy persist, including low productivity, reliance on imports, and dependence on subsidies.
Economist Aleksandar Stevanović argues that the current government’s economic results are below average and marked by continuity rather than innovation. He criticizes the government for fostering social conflict and creating an environment that discourages investment.
Retired professor Božo Drašković believes that the government lacks autonomy and a coherent development strategy. He criticizes ongoing unproductive investments and reliance on foreign direct investment, which he sees as insufficient for long-term development. He concludes that as long as personal rule continues, Serbia will not have a functional government.
