(MENAFN) Analysts said that the government in Serbia should do more than upholding austerity measures to save the country's economy, The Peninsula Qatar reported.
The government plans to implement an austerity program, including sales tax hikes and wage cuts, due to a budget deficit amounting to 7.5 percent of output and a public debt that goes over 60 percent.
An analyst with the Royal Bank of Scotland said that cutting wages by 25 percent will not be enough as the public sector employs 700,000 people of the country's 1.7 million workforce.
He also said that the austerity measures, when implemented, will not be enough to meet the IMF's demands to provide the country with a USD1.3 billion loan which was frozen February 2012.
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