Revised Memorandum on the Budget and Economic Fiscal Politics for 2010, with projections for 2011 and 2012

On the basis of Article 31, par.1. item 1) of the Budget System Law (“Official Gazette of the Republic of Serbia”, No. 54/09),

The Government hereby adopts the revised

MEMORANDUM

ON THE BUDGET AND ECONOMIC AND FISCAL POLICY FOR THE YEAR 2009, INCLUDING PROJECTIONS FOR YEARS 2011 AND 2012

I. MACROECONOMIC FRAMEWORK FOR THE PERIOD 2010 – 2012

1. Economic Trends and Perspectives in 2009

Unfavourable tendencies in the economy, which emerged in the second half of 2008, continued in 2009. In the first nine months of 2009, economic activity and foreign exchange were drastically reduced due to significant shrinking of domestic and exports demand, credit activity fall and lower liquidity of companies because of the global economic crisis.

The undertaken economic and monetary policy measures prevented collapse of financial and real sector and mitigated effects of the global financial crisis on the Serbian economy. Recession tendencies were stopped, though it is still not certain when the Serbian economy will start to recover and how long it will take.

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Revised Memorandum on the budget and economic and fiscal policy for the year 2010, including projections for years 2011 and 2012

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