Sectoral Analysis of Structural Changes of the Republic of Serbia

Abstract

The practice of “structural experimenting” and inattention to structural disproportions is impermissible in the modern conditions of macroeconomic management. In order to properly determine the direction of restructuring of an economy, there should be conveyed a detailed sectoral analysis. It should provide us with knowledge about which sectors should be specially stimulated in the future, in order to accelerate the economic development of a country. It certainly does not mean that other sectors should be neglected, because such wrong decision would bring deeper structural disparities in national economy.

The restructuring of the economy is momentarily one of the most complex macroeconomic issues of the Republic of Serbia. In the order of activities, first of all, there should be identified the leading sectors of the economy of Serbia, which are the framework of its economic development. Also, there should be identified potential “pulling” sectors, that would give way to future structural changes and future economic structure of Serbia. The structure of economy of Serbia should be “adjusted” in such way that should even in the long run provide a stable economic growth, and to lessen the disbalance of the balance of payment, to increase the competitiveness of the economy, to decrease the unemployment, and finally, to increase the social standard of living.