2015 Annual Review of Labour Relations and Social Dialogue Serbia RADMILA GROZDANIC March 2016 Executive Summary  The recovery of the Serbian economy continued in 2015, backed by efforts to strengthen public finances, address structural weaknesses, and improve the business climate. Current developments suggest that the macroeconomic perspective of the country has improved and that the recovery in economic activity has intensified.  Consistent implementation of fiscal consolidation along with the initiated structural adjust­ments favourably affected the investment environment. The balance of payment deficit was considerably reduced and inflation as well as indications of internal imbalances is extremely low.  Despite the restrained positive economic development, social problems persist. Youth un­employment is of particular concern.  Social dialogue remained weak in 2015. The social partners did not succeed in agreeing on an increase in the minimum wage or to build a joint agenda that would be ambitious and bring a positive contribution to growth and job creation, especially regarding youth unem­ployment and layoffs due to company restructuring.  This year’s government ’s legislative track record was impressive, especially with regards to the economic and education sector. However, the Government did not involve trade unions in the design and implementation of its employment and social policies.