Serbia will reach EU’s current level of economic development in 133 years

BELGRADE – Serbia will only reach the EU’s current level of economic development in 133 years time, Serbian newspaper Kurir reported on Tuesday.

Serbia will take at least 133 years and Croatia 64 years to close the gap on the EU’s current level of economic development, if they can maintain an annual rate of GDP growth of two percent per head, Serbian newspaper Kurir reported on Tuesday.

According to calculations by Dr. Drago Pupavac at Croatia’s University of Rijeka and Dr. Danica Drakulic at Serbia’s University of Novi Sad, other countries in the region will take even longer to reach the average level of development of 27 EU countries, measured by GDP per head.

While Montenegro, with a two percent annual growth rate, will reach the standard in 110 years, Macedonia should take 135, Bosnia 157 years and Albania 148 years.

The researchers wanted to test the economic theory of convergence, according to which less developed economies tend to grow faster.
They found that the process of divergence in the countries of the Western Balkans is extremely slow, and hampered by warfare, political instability and prolonged transition.

However, they still believe that with a more effective economic policy, countries in the region could increase their annual GDP by five or six percent and bridge the gap in 14 or ten years respectively in the case of Croatia, or 28 or 23 years respectively in the case of Serbia.

“Although we do not predict that any country of the Western Balkans will converge with the countries of the EU before 2020, their economic policies should be directed towards a high rate of national growth, to create the necessary conditions for convergence: development of human capital, institutions, an environment that encourages entrepreneurship, knowledge of investment management and investment structures,” they wrote.

Last year Serbia’s GDP grew by 0.8 percent (annualized), and Croatia’s by 1.6 percent (annualized).

Serbian economic analyst and commentator Dragan Vujadinovic told Kurir that the modest projection figures are a result of low rates of growth, and a small base output.

“You need a large turnover, large investment for large growth. Rather than today’s average (increase) of about one billion euros ($1.1 billion) we need two to three billion to attain growth of four percent. Regardless of who is in power, that’s what the economics look like, mathematics is relentless,” Vujadinovic said.

4 COMMENTS

  1. Whatever the year, it is a year too soon. While EU disappears into its economical and migrant quick sand, make sure it keeps it’s grubby hands off Serbia. What money Serbia has taken from EU it takes with clear conscience, when it takes back Kosovo it can let EU have the Albanians back too.

    • Elaine, don’t you know that hardly any of that EU money stays in Serbia? People who have worked in the EU in Serbia and the Balkans report that the money for their projects in Serbia mostly go to EU consultants and companies – that local companies are shut out. There have been at least two individuals who both report the same think in their comments to B92 articles on the EU giving Serbia money.
      There was one comment very recently, which I did not save. However, here is an old one I had copied and pasted to a file:
      I work with the EU in Serbia. 90% of the money “donated” pays for so-called experts (like me) who don’t know a thing about Serbia, from the EU, working for EU consultancy companies to work on various projects. Serbian companies are not allowed to apply for almost any of these projects. The money also has a number of conditions tied to it as well for Serbia to make reforms specifically geared to the way dictated by Brussels. Most of that money does not stay in Serbia. But it’s not just in Serbia, it’s the same in Bosnia, Montenegro and FRY Macedonia.
      (Betty Johnston, 5 February 2012 23:05)

  2. Great minds think alike !!
    But I do have this gut feeling, (THEY) will hold most if not all European countries hostage, like the soon to be the blushing bride ( Serbia ) under the EU umbrella for as long as they need too. Their main love affair here is nothing New… too consolidate as much territory / countries for their long timed military goal, to surround Russia through economic warfare and at the same time limiting Russia’s movement on the chess board. First move/play happened just recently in Romania. Simply distracting the eyes by placing the So called missile ( defense system ) So they say, throughout eastern Europe as a (diversion) for their Enemy, and as a barrier to protect the three Heads (cities) of the BEAST and the ONE Overseeing Eye that slowly sucks the blood out of the people of this world, with such brilliance and precision that never seize to amaze me ! ( they hold the masses in on the farms in a hypnotic state)
    Now back to the blushing bride. Sweet words, promises of a EUROPEAN Union, with little gifts of money and new contracts to rebuild a new economy, may have Serbia thinking that she is really something special, and that EUROPE has fallen in LOVE with Serbia’s beautiful eyes all over again !
    But SERBIA has something way more then just beautiful eyes to look at ( I am just a romantic at heart ) I am sorry Serbia, but Not everyone knows how to really Love you for what you are.
    What Serbia has may be one of the biggest military bases in all of EUROPE? right in her back yard ! BINGO … now use you imagination .

  3. Feck economy – it’s a lost game now. Serbia will be absorbed by a corporation offering work and housing and have citizens grown by foreign CEO’s. The smarter pop will either emigrate, amalgamate abroad or suicide.
    That’s why I laugh at nationalism over here. Short sighted backward twits.

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