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Concerns over Serbia’s growing debt and the economic viability of recent investments

Economist Dejan Šoškić has expressed concerns about the rushed and ill-planned nature of certain government proposals, particularly regarding the country’s growing public debt and investments that, in his view, may not yield the expected economic benefits.

In a recent interview for the holiday edition of the Nova newspaper, Šoškić pointed out that the lack of allocated funds in the national budget for certain proposed initiatives raises questions about their feasibility. He explained that the participation fee for state housing projects, while theoretically unnecessary, remains a matter of concern. According to Šoškić, the haste in these financial decisions shows that they are not adequately thought out.

Šoškić also commented on Serbia’s increasing public debt, which he believes is being accumulated too quickly. He highlighted that since 2020, the national debt has grown by an additional €14.2 billion. He expressed skepticism about the return on investments made in recent years, such as stadiums and the EXPO, arguing that these projects are unlikely to contribute meaningfully to Serbia’s GDP or ease the future burden of servicing the national debt.

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Despite the government’s optimism regarding major projects like EXPO, Šoškić does not foresee any long-term boost to Serbia’s economic development. Instead, he predicted that average Serbian citizens would bear the brunt of the new public debt, facing higher financial burdens in the years to come.

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