Several reasons account for the region’s relatively weaker economic performance. Perhaps the most critical reason stems from the lack of sufficient capacity, whether it is to stimulate and sustain potential growth, to confront unsustainably high public debt burdens, or to manage risks arising from financial integration in the Caribbean.
Import growth in that period is mostly attributable to the economy’s increased needs for intermediate goods and equipment, and partly to consumer demand amid conditions of citizens’ rising living standard. Imported equipment boosted the Serbian economy’s export capacity, therefore we expect to see high export growth rates continuing in the medium run.