economy
April 6, 2026
Inflation is coming, budget wisely
Governments themselves are fueling inflation by overdoing subsidies. The political system should not target a larger group of people in the population (to whom it distributes money) but should adhere to the model of helping those who need it most.
TL;DR
- Governments are warned that excessive subsidies, especially in an election year, can significantly contribute to inflation.
- The war in the Middle East is a primary catalyst for rising global energy prices, leading to increased inflation in the Eurozone and posing a risk to Serbia's economy.
- Serbia should prioritize fiscal buffers and targeted aid over broad subsidies to mitigate inflationary pressures and maintain macroeconomic stability.
- Inflation disproportionately affects the most vulnerable segments of the population, and rising prices for essentials like food could worsen their situation.
- Despite demands for state protection, most economies cannot afford extensive subsidies similar to those seen in previous years.
- Serbia is highly exposed to external economic shocks, limiting its ability to shape its future, and must cautiously manage its economy without resorting to populist measures.