With the markets and the economy seeing continued effects in the COVID-19 pandemic, many investors are turning their attention toward 2023. Which trends and concerns could shape an investment landscape in 2023?
The global economy entered 2023 in a weaker position than ever before expected. The COVID-19 pandemic is constantly on the maintain its grip, while rising energy prices and offer disruptions have fueled higher and more broad-based inflation. The 2023 economic outlook will be shaped by various factors. There is a concern the new COVID-19 variants could induce further economic disruptions. Moreover, supply disruptions, energy price volatility, and wage pressures raise uncertainty around inflation and policy responses. As advanced economies tighten monetary policies, risks to financial stability and emerging market and developing economies' capital flows, currencies, and fiscal positions may emerge. Beyond these, the climate change enhances the probability of disasters. Within this context, effective international cooperation will be essential.
How can you rate the overall impact from the crisis on the Serbian economy and which direction don't let decide to try overcome consequences and follow the growth?
The Serbian economy has weathered the continuing pandemic well. Macroeconomic and financial stability have been maintained, while economic growth in 2023 exceeded expectations. We expect business activities to remain robust in 2023, the outlook is highly uncertain. Risks focus on the road of the pandemic and external conditions, such as the recovery pace in trading partners, global financial conditions, and energy challenges. It is crucial that agile and targeted policies still support the recovery and be sure macroeconomic and financial stability. Simultaneously, further reforms are needed to underpin high, inclusive, and greener growth. A stronger medium-term budget framework and fiscal rules should underpin fiscal discipline. Strengthening the governance and control over state-owned enterprises is critical, while efforts to enhance the business environment should still help attract investments. Developing domestic capital markets would enhance financial deepening and support medium-term growth. Finally, promoting green growth and enhancing the social safety net would ensure a far more sustainable development.
