Rising Serbian Budget Deficit Causes Worries

BusinessEconomy ♦ Published: July 24, 2012; 19:54 ♦ (Vindobona)

This year, Serbia has to borrow € 4.2bn. A budget deficit of € 300m is forecasted in 2012.

Rising Serbian Budget Deficit Causes Worries / Picture: © Flickr

The new government faces enormous challanges as the situation of the domestic economy is everything but promising. In the last two years, the Serbian economy only grew very decently. This year, only a growth rate of 0.2% is anticipated. At least, Serbia´s GDP should grow by 1.7% next year.

One of the most pressing issues is the high unemployment quota. After an unemployment…