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NBS: Serbia moves up on Index of Economic Freedom
Serbia has moved up on the world Index of Economic Freedom, which Canadas Fraser Institute published in its 2020 Report, based on the data for 2018, and it currently ranks as the 74th of 162 countries. The biggest contribution to this progress came from the improved assessment in terms of access to sound money, thanks to the preservation of low, stable and predictable inflation, the National Bank of Serbia (NBS) announced.

According to this Index, which indicates the degree to which policies and institutions are aligned with the fundamental principles of economic freedom, Serbia was graded with 7.05 on a 1–10 scale, which is slightly above the world average of 6.9. Observed by index components, compared to the previous year, Serbia progressed in the Sound money area, where its average grade is 8.47. This was achieved mainly owing to low, stable and predictable inflation which safeguards the real value of corporate and household income.

– Compared to the previous year, Serbias average also improved in areas Legal system and property rights, Regulation of credit, labour, and business, as well as Freedom to trade internationally. It is a fact that within these areas, progress was mainly recorded in terms of employment, removal of trade barriers and administrative requirements, and the protection of property in favour of an improved investment environment, NBS stated.

The Index of Economic Freedom is calculated based on 42 distinct variables classified into five broad areas: government size, legal structure and security of property rights, access to sound money, freedom to trade internationally, and regulation of credit, labour, and business. The final grade is obtained as an average in these five areas. The grades are calculated based on the data of the International Monetary Fund, World Bank, World Economic Forum and other international institutions.

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