Meagan-177-002

: Reforming educational and vocational training programs to align with market needs.

To accelerate growth and productivity, the paper proposes: meagan-177-002

Successful implementation of these structural reforms is essential for Serbia to narrow the income gap with the EU. By focusing on productivity and innovation, Serbia can offset declining labor and capital contributions and secure a higher growth trajectory for the coming decades. Republic of Serbia: Selected Issues (2025) - IMF eLibrary : Reforming educational and vocational training programs to

: Streamlining access to finance for local businesses to drive domestic investment. Republic of Serbia: Selected Issues (2025) - IMF

The paper identifies structural deficiencies in Serbia's economy and suggests reforms to enhance productivity and boost total factor productivity. Below is a draft summary and analysis based on the key themes of that report.

: Serbia's growth has been steady but insufficient to close the income gap with EU nations.

This paper examines the historical and future drivers of economic growth in the Republic of Serbia. While Serbia has maintained growth rates comparable to regional peers, a significant income gap with the European Union (EU) persists. As traditional contributions from labor and capital are projected to decline, this report argues for urgent structural reforms to boost total factor productivity and ensure sustainable long-term development. 1. Economic Context and Growth Drivers