Allow me to reiterate – fiscal and external imbalances are often connected and, represent the key factors for the assessment of macroeconomic sustainability and the risk premium of any country. Therefore, any valid strategy of recovery, i.e. exit from the economic and fiscal crisis, must take into account the effect of such growth on the external and fiscal balance of the country.
Only growth which leads to the achievement and maintenance of external and fiscal balance in the medium and long run is sustainable growth. Only this growth can lead to a sustained decrease in Serbia’s risk premium and hence cheaper credits for the Serbian state, corporates, banks and households.