We are particularly happy about the rise in dinar savings, which are today almost four times higher than at end2012, exceeding RSD 70 bn in July this year. This truly reflects citizens’ increased trust in the domestic currency.
Such an optimistic view may entail a risk. The aging population will continue to put pressure on additional fiscal expenditure, such as increasing social security benefits. The aging will constrain the labor supply on the supply side, and change the demand structure of the economy as a whole.