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Higher public wages, pensions to support Serbia's GDP growth - World Bank economist

  • Source:seenews.com
  • Date:2018-04-12 12:22
 

Higher public wages, pensions to support Serbia's GDP growth - World Bank economist

The House of the National Assembly in Belgrade; Source: Council of Europe

BELGRADE (Serbia), April 12 (SeeNews) - The World Bank's country economist in Serbia, Lazar Sestovic, has said he expects that increased public spending on wages and pensions of the Serbian government will have a positive effect on the country's economic growth.

As much as 10% of Serbia's gross domestic product (GDP) is generated through direct participation of the state, while pensions contribute a further 7%, which is a high percentage, Sestovic said in a video file posted on the website of Tanjug news agency on Wednesday.

"Therefore, every change in public spending is immediately reflected in the GDP," Sestovic said.

In the first two months of 2018, government spending on public wages and pensions rose by 11.8% and 4% on the year in nominal terms, respectively, he added.

Serbia's 2018 government budget envisages an increase of the salaries in the public sector by 10% and of pensions by 5%.

The World Bank said earlier this week it expects Serbia's GDP growth to quicken to 3.0% in 2018 and 3.5% in 2019, from 1.9% last year.

  • Source:seenews.com
  • Date:2018-04-12 12:22
Key Words:pensions,said,public,Sestovic,government
 
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