INDICATORS OF ECONOMIC SECURITY IN THE REPUBLIC OF SERBIA

Abstract

Purpose: The paper analyses the indicators of economic security in the Republic of Serbia in the period from 2013 to 2021. The following indicators of economic security of individuals and households were analyzed: inability of households to face unexpected financial expenses and arrears on mortgage or rent payments. In addition, starting from the fact that physical safety affects the level of economic well-being of citizens and citizens’ decisions regarding various forms of economic activity, physical safety indicators: the rate of intentional homicide, and perceived crime, violence, or vandalism were also analyzed. The analysis is complete with macroeconomic indicators of economic and social development (GDP per capita, GDP growth rate, number of unemployed, unemployment rate, average salary, foreign exchange reserves, inflation rate measured by the Consumer Price Index (CPI), fiscal surplus/deficit as a percent of GDP, share of public debt in GDP, and foreign trade deficit as a percent of GDP). These indicators should provide a picture of the achieved level of economic development in the Republic of Serbia, which is a prerequisite for the economic security of citizens and also an important element of national security. The purpose of the paper was to examine the level of economic security of citizens in the Republic of Serbia in the observed period and to make a comparison with the member states of the European Union.Design/Methods/Approach: Here in the paper, the Eurostat approach was applied, according to which economic security is considered a dimension of quality of life. In this approach, the measure of economic security is the risk faced by citizens in terms of facing an undesirable economic outcome. The level of that risk is expressed by indicators of economic security and physical safety. The analysis of economic security is based on the EU-SILC survey (the European Union Statistics on Income and Living Conditions survey), which forms part of the statistics on income and living conditions of Eurostat. The analysis of physical safety is based on crime statistics from Eurostat and also on information on the perceptions of the citizens regarding crime, violence, or vandalism in the area where they live.Findings: The analysis showed that in the period 2013–2021, the level of economic security of citizens of the Republic of Serbia increased. The level of physical safety has also increased. In addition, indicators of economic and social development are also at a higher level than in 2013. The difference regarding the ability of households in Serbia and in the EU to face unexpected financial expenses has decreased, while in terms of arrears on mortgages or rent payments, Serbia is in a much more favorable position than the EU average. In addition, physical security indicators are at a lower level than in EU countries, and as of 2019, Serbian citizens perceive a lower level of crime, violence, or vandalism in the areas they live in than EU citizens.

Originality/Value: Here in the paper, qualitative progress has been made in the analysis of economic security in relation to the existing state of art because, so far in the literature, economic security for Serbia has been analyzed on the basis of traditional, macroeconomic indicators of economic and social development such as GDP, rate of unemployment, average earnings, standards of living indicators, etc. Research on economic security in the Republic of Serbia here is directed towards the analysis of individual economic security and is based on indicators developed by Eurostat as well as on an understanding of the broader concept of economic security, which in the Eurostat approach is viewed as a dimension of quality of life. Keywords: economic security, physical safety, SILC, crime statistics, Republic of Serbia.