On the one hand, the adjustment did not have to take place through sudden and drastic wage reductions and on the other, net exports gave a positive contribution to GDP growth. In this way, the dinar exchange rate was also the “engine” of Serbia’s subsequent recovery, which will facilitate our shift to a new, sustainable model of investment- and exports-driven economic growth.
Session Four will deal with the management of capital flows, reserves and exchange rate volatility, which is a topical issue given the current problems in some emerging economies. Session Five will cover the topic of preventing the middle income trap.