Brief Assessment of Convergence Trends Towards EU of Serbian Economy

As a recent candidate to EU integration, Serbia has to undertake important economic reforms to ensure that its economy convergences towards the Western principles of competitiveness and efficiency. The analysis of recent trends in the economy shows that Serbia is slightly converging to EU economy, both in nominal and real terms. However, this is conditional to improvements in capital productivity through investments, such that the total factor productivity increases and consequently the expected augmentation of real wages will be fully supported by the overall increase in productivity