ECONOMIC DEVELOPMENT OF SERBIA AFTER 200 0– RESULTS AND PERSPECTIVES FOR DEVELOPMENT

The economic development of Serbia is largely based on traditional sectors (food industry, agriculture, construction, metal industry) characterized by low productivity and limited added value, employing over 50% of the total workforce. Consequently, Serbia has failed to reduce its development gap relative to the Central and Eastern European (CEE) countries over the past 20 years and remains at 60% of their average level. Achieved growth rates have primarily relied on increased investments and employment, with minimal contributions from technical progress and new technologies. Therefore, a shift in economic policy is necessary, emphasizing the application of knowledge and new technologies, along with significantly higher investment participation in the gross domestic product (GDP) from the domestic private sector. Only growth based on these assumptions will be sustainable in the long term and lead to increased competitiveness of the economy in the global market.