Macroeconomic Forecast Serbia

Data from the Ministry of Finance revealed on December 17 that public debt in Serbia totalled EUR14.5bn in November. This brings the total public debt load to 44.8% of GDP, just a notch away from the government's self-imposed debt limit of 45% of GDP. The country's debt pile was as low as 28.2% of GDP in 2008 but, since then, the government has been forced to implement extremely loose fiscal policy in order to alleviate the impact of the 2008-09 global recession, which saw the Serbian economy contract by 3.5%. In order to respect the debt ceiling, the government has decided to halt further borrowing throughout 2011.

To read the full article, please choose one of the following options: