Serbia will officially overcome the recession in the first quarter of this year, said Deputy Prime Minister and Minister of Economy Mladjan Dinkic on Feb. 8.

At a Business Council meeting with entrepreneurs he said that statistical data had confirmed Serbia was overcoming the recession and underlined that the level of economic activity in the first quarter of this year would be higher than it had been in the same period in 2009.

The level of Serbia's gross domestic product (GDP), as underscored by the minister, had returned to what it was last year. Dinkic said that GDP growth this year would certainly be 1.5 percent, but, he emphasized, it could be even more if the government implemented appropriate measures.

According to him, Serbia's budget deficit last year was 4.3 percent of the GDP, but he added that the government considered that to be too high.

This year the budget deficit is planned to be four percent, which is 50 percent less than the European Union average, said Dinkic, adding that Serbia's public debt, which was 32 percent of the GDP, was also 50 percent less than the EU average.

Dinkic said that Serbia should not take on additional debt in 2011, apart from loans which had already been withdrawn and guarantees which were envisaged by the 2010 budget.