Financial Sector in Serbia Better Prepared for Recession Than in Previous Crisis

The majority of the financial sector in Serbia recorded a growth last year, and experts estimate that this market is far more prepared for a potential recession than it was during the previous financial crisis, as said in the “Finansije TOP” edition, published by the economics monthly “Biznis i finansije”.

According to the estimates presented by representatives of the financial sector, those in charge at the state government and independent economic analysts, in the annual edition of the “Biznis i finansije” magazine, the financial sector in Serbia is stable despite the disturbances caused by the pandemic and the war in Ukraine.

Unlike the previous financial crisis, when the state spent EUR 900 million to mitigate the consequences in the financial market, the financial sector is currently not a major threat to the public finances, the analysts agree.

The experts point out that Serbia’s position in the current geopolitical and military conflict is very unenviable.

If Serbia stuck to its position not to impose sanctions against Russia and if its relations with the western countries worsened due to it, it would cause a drop in foreign investments and exports and make foreign borrowing of the state and the economy more difficult.

At the same time, worsening relations with Russia would also have a negative impact on the Serbian economy, primarily through the high growth of the price of gas and potential shortages, which would then lead to an increase in expenditures for the economy and the citizens, it is said in the “Finansije TOP” edition.

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