Bunjevac
Sun, 29th October 2006, 21:02:26
This means that Serbia's wages are somewhere between 25% to 50% below the highest levels in SFRY. Although I doubt the wages are at the reported 271 euros a month since statistical problems exist with this and the wages are likely higher.
Wages, imports grow, GDP falls behind
29 October 2006 | 11:33 | Source: Politika
BELGRADE -- Wages and imports in Serbia are now at the 1990 level, but the GDP level’s growth is still slow.
According to Politika, net salaries in Serbia in September were 271 euros on the average, which is more than the May 1991 figure, when the average salaries stood at 268 euros. The salaries now are closer to the second half of 1990 values, the last year before the international sanctions.
Economic Institute associate Miroslav Zdravković says the factors for the growth are the strong dinar, and the steady rise in the average salaries which has continued throughout the year.
However, salaries are this year just under 40 index points above the GDP level, while the imports level stands at 50 index points above that of the exports. Beside the salaries, there is a strong flow of capital from abroad, mostly through investments.
The rise in the average salary does not stimulate a decrease in the unemployment rate. With this average, objectively insufficient for a normal lifestyle even compared to the regional countries, few people will take on jobs that pay less that the average wage. This leads to the phenomenon of a high unemployment rate, and a large number of vacancies that are never filled.
“A high rate of salary increase brings with it the possibility of an increase in imports, which spells out a trade deficit, which for its part, slows down the recovery of the GDP. At present, the pace of that recovery is not entirely slow, but it is still insufficient to pull us out of the problems we have been facing for years”, Zdravković says, and reminds that the levels of the most successful year, 1989, are still far from reach.
Wages, imports grow, GDP falls behind
29 October 2006 | 11:33 | Source: Politika
BELGRADE -- Wages and imports in Serbia are now at the 1990 level, but the GDP level’s growth is still slow.
According to Politika, net salaries in Serbia in September were 271 euros on the average, which is more than the May 1991 figure, when the average salaries stood at 268 euros. The salaries now are closer to the second half of 1990 values, the last year before the international sanctions.
Economic Institute associate Miroslav Zdravković says the factors for the growth are the strong dinar, and the steady rise in the average salaries which has continued throughout the year.
However, salaries are this year just under 40 index points above the GDP level, while the imports level stands at 50 index points above that of the exports. Beside the salaries, there is a strong flow of capital from abroad, mostly through investments.
The rise in the average salary does not stimulate a decrease in the unemployment rate. With this average, objectively insufficient for a normal lifestyle even compared to the regional countries, few people will take on jobs that pay less that the average wage. This leads to the phenomenon of a high unemployment rate, and a large number of vacancies that are never filled.
“A high rate of salary increase brings with it the possibility of an increase in imports, which spells out a trade deficit, which for its part, slows down the recovery of the GDP. At present, the pace of that recovery is not entirely slow, but it is still insufficient to pull us out of the problems we have been facing for years”, Zdravković says, and reminds that the levels of the most successful year, 1989, are still far from reach.