Serbia’s economic situation has been critically assessed, with concerns raised about the country’s growth model and its long-term sustainability. According to a prominent economist, the country’s economic progress is insufficient and heavily reliant on factors that do not promote technological advancement or improve living standards for future generations.
In 2023, Serbia’s real GDP per capita, after a revision, stood at €8,520, which is slightly higher than Montenegro’s GDP per capita of €8,460. However, before the revision, Serbia’s GDP per capita was €6,500, lower than Montenegro’s €6,900. This discrepancy highlights concerns about how economic data is manipulated and presented, according to experts.
The economist emphasized that Serbia’s economic growth is largely driven by large public investments in infrastructure, which have been linked to corruption and crime. Furthermore, the influx of foreign direct investments is mostly in labor-intensive industries, relying on cheap, manual labor and exploiting local resources. This model, while providing short-term gains, does not foster technological advancement or sustainable economic growth.
The country is also facing significant social challenges, with approximately two million people living at or near the poverty line. Serbia has one of the highest income inequality rates in Europe and ranks among the most corrupt countries globally. The economy’s poor structure is contributing to a high rate of emigration, with about 40,000 citizens leaving the country annually, while rural areas continue to depopulate. These demographic trends, combined with a negative natural population increase of around 40,000 to 50,000 per year, paint a worrying picture for the country’s future.
The expert calls for a shift towards high-tech industries and a stronger focus on investments in education, science, and culture. However, he criticizes the current government’s approach, accusing it of undermining knowledge and culture, which he believes only exacerbates corruption, nepotism, and crime, further hindering the country’s potential for sustainable development.
