REQUIREMENTS FOR ECONOMIC DEVELOPMENT OF SERBIA
REQUIREMENTS FOR ECONOMIC DEVELOPMENT OF SERBIA

Summary/Abstract: The global economic crisis has pointed to the problems of the current market growth model. More points out that the crisis is an opportunity, especially for countries in transition and developing countries to start their own growth model based on the accumulation of domestic and industrial production, rather than on imports and foreign investment. In the recession of the global economy, the greater the damage sustained by the economy that had had a strong industry. With the intensification of the global economic crisis, the Serbian economy has entered a period of turbulence and critical stage of development. GDP growth is based on imports, high spending and borrowing abroad, that this encourages consumption and finance. The moment when flow of capital into Serbia stopped, and credit activity, private and public consumption decreased, the domestic economy has entered a deep crisis. The crisis has clearly shown that the model of development of Serbia, based only on the service sector, high consumption, imports and growing external debt is not sustainable. The most important place in the model must have industry, agriculture, investment and exports. The work will be analyzed macro-economic indicators in Serbia, Serbian economic position in the region, the factors that influence the development as well as forecasts and opportunities for economic development in the coming period.

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