RESULTS OF FIRST TRANSITION YEAR IN SERBIA PRESENTED

ZAGREB, May 22 (Hina) - Serbia's specific quality in the region of central and eastern Europe lies in the fact that it is lagging by an entire decade behind the other countries in the region in its transition, or rather, that it has only just now completed its first year of transition, Serbia's Deputy Finance and Economy Minister Dejan Popovic said on Wednesday.#L# Popovic spoke during a presentation of the macro-economic situation and investment opportunities in that country held within the Seventh Financial Forum in Zagreb. That quality has its advantages, seeing that Serbia has an opportunity to use ten years of experience in other countries in the region, Popovic said. It is precisely for this reason, he added, that the legislative framework for privatisation in Serbia is estimated to be one of the best in the region. The first year of transition in that country was marked by the stabilisation of the macro-economic environment. Inflation was lowered from 113 percent in 2000 to 40per cent last year. This year it is expected to be between 15 and 20 percent. The growth of Gross Domestic Product (GDP) last year amounted to 5.5 percent. The Serbian government intends to maintain it at 4-5 percent in the coming years. The average salary in Serbia grew from EUR47 per month in 2000 to EUR102 last year. It is estimated that this year this figure will amount to EUR122. Popovic also highlighted last year's decrease in the share of the budget deficit in GDP to about 1.3 percent. He pointed to the problem of the large deficit in foreign trade. The government's priority is to expand exports and at the same time intensify attempts to attract direct foreign investments, he said. He also announced more intense privatisation moves. Through tenders for privatisation, about 200 to 400 of the largest companies in Serbia will be sold, while about 7,000 smaller companies should find new owners through auctions. (hina) sp sb