Mijuskovic: Serbia is the economic leader of the Western Balkans

Economist Veljko M. Mijuskovic has stated that Serbia is the economic leader of the Western Balkans, attracting approximately EUR 4 to 5 billion in foreign direct investment annually and accounting for around 50 to 55 percent of the region's total gross domestic product (GDP).

"If we look at countries outside the region but in its immediate neighborhood, such as Croatia and Slovenia, they have naturally made greater progress thanks to their membership in the European Union. However, when considering the Western Balkans alone, Serbia is the regional leader," Mijuskovic told Kosovo Online.

He emphasized that Serbia is the only non-EU country in the Western Balkans to have been awarded an investment-grade credit rating by Standard & Poor's, and that it is also on the verge of obtaining the same status from the other major global credit rating agency, Fitch Ratings.

Mijuskovic explained that Serbia's economic growth is currently driven by several key factors, including major infrastructure projects, foreign direct investment, infrastructure development, and certain segments of the agricultural sector. At the same time, he pointed out that there are also constraints slowing further development.

"There are, of course, numerous constraints limiting economic growth. These include the low competitiveness of domestic enterprises, the relatively low productivity of small and medium-sized enterprises, and an insufficient level of innovation in production processes," the economist noted.

He expects that, with the announced changes to—or enhancement of—the country's economic growth model, Serbia will maintain its leading position in the region.

"The changes we expect in the country's economic model primarily involve a greater focus on technologies with higher added value, which will increase the level of innovation within the economy. The modifications envisaged for the future should help overcome the shortcomings that have been identified," said Mijuskovic, who is also an Assistant Professor at the Faculty of Economics, University of Belgrade, and a business consultant.

According to him, Serbia should continue implementing reforms and advancing its integration with the European Union by strengthening the competitiveness of its economy, institutional capacity, and the rule of law, while further improving the overall business environment.

"It is certainly necessary to continue the reform process and the country's integration with the European Union through participation in the Single European Market, the abolition of roaming charges, and the strengthening of institutional capacities. We should also continue enhancing the competitiveness of the domestic economy, improving the institutional framework, and refining procedures related to the rule of law. Significant progress has already been made, but we are all aware that EU membership is, above all, a political issue. Our task is to continue improving Serbia's business environment, and positive results will inevitably follow," Mijuskovic concluded.