Navigating Serbia’s Economic Future: The Crucial Role of Productivity
Selected Issues Papers, August 6, 2025
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- Navigating Serbia’s Economic Future: The Crucial Role of Productivity
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Bibliographic details
- Authors: Anh Thi Ngoc Nguyen
- Published: August 6, 2025
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229020367.018
Executive summary and context
- Serbia has grown at a rate comparable to peers over recent decades, but the income gap with the EU, albeit narrowing, remains large.
- As contributions from labor and capital to potential growth are expected to decline, Serbia needs to accelerate structural reforms to boost total factor productivity (TFP).
- Successful implementation of structural reforms could yield substantial benefits.
Key findings on growth and productivity
- Serbia’s recent growth performance is comparable to peer countries.
- The income gap with the EU remains large, though it is narrowing.
- Contributions from labor and capital to potential growth are expected to decline, increasing the importance of TFP improvements.
Policy options and recommendations
- Strengthen governance.
- Reduce state influence in the economy.
- Address skill mismatches.
- Enhance access to finance among firms.
- Promote research and development (R&D) and innovation.
Subject areas and keywords (as provided)
- Subjects: Labor, Labor markets, Labor productivity, Production, Productivity, Revenue performance assessment, Tax gap, Total factor productivity
- Keywords: address skill mismatch, business environment, Europe, FDI firm, Global, governance, human capital, innovation, Labor markets, Labor productivity, policy option, potential output, product market reform, product market reforms, productivity, role of productivity, Serbia, structural policy gaps, structural reforms, Tax gap, Total factor productivity
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