ATANACKOVIC: Projection of GDP Drop of 1-2% in Serbia Too Optimistic

The honorary president of the Serbian Association of Employers, Nebojsa Atanackovic, said that the projection that the GDP in Serbia would drop by 1-2% was too optimistic.

– Since Western European countries are projecting a drop of 8% or 9%, I don't believe that the drop in Serbia will not be bigger than 2% – Atanackovic told Beta.

Representatives of the Government of Serbia have estimated that the GDP will not drop by more than 2%, and the president, Aleksandar Vucic, believes that there will be no drop. A growth rate of 4% is projected for this year.

Atanackovic assessed that, since March 15, a lot of people had lost their jobs, much more than the official statistic of 2,000.

He added that this number didn't include those who had lost their jobs and who had worked through agencies or under temporary contracts.

He said that the real state would become apparent in early June, when the state aid of three minimum wages for small and medium companies comes to an end and when it becomes apparent whether the demand returns.

– I don't believe that the German automotive industry would start working at full capacity, which is what Serbian companies which produce components for that industry depend on – Atanackovic said.

He added that the procurement of the secondary materials for the domestic industry would not recover fully in the first few months either and that supply from Italy would be a special problem.

Atanackovic said that the state of individual companies was best shown by the fact that they had proposed to their employees to give half of the minimum wage paid by the state to the company to pay taxes and contributions and to not work during that period, due to the reduced workload.

He points out that such cases are not frequent and that such arrangements are made when it is in the mutual interest of the workers and the employer. He adds that this kind of solution is only the last resort.

Vlada Republike Srbije

Unija poslodavaca Srbije

Nebojša Atanacković

Aleksandar Vučić

drop of gross domestic product

drop of GDP

GDP

unemployment

layoffs

temporary employment contracts

employment through agency

minimum wage

automotive industry

secondary materials

payment of taxes and contributions