In its latest report, the European Commission forecasts that, due to the consequences of the pandemic, Serbian GDP will fall this year by 4.1%, that of the countries in the region will fall to minus 9.1%, while the deficit in the eurozone will be 7.7%.
In the region, the biggest decrease of 9.1% will be recorded by Croatia, followed by Slovenia (7.0%), then Montenegro (5.9%), Albania (4.8%) and North Macedonia (3.9%).
The eurozone will see a record drop in GDP of 7.7%, while across the EU it will be 7.4%. Next year, economic growth in the eurozone is expected to be 6.3% and 6.1% in the EU.
The impact of the epidemic on the various segments in Serbia will bring private consumption, according to the EC, down to -4.2% in 2020, and then jump to +6.8% next year, while public spending will increase by 3.2% this year, to slow down to 2.8% in 2021.
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The document, published on the Commission’s official website, forecasts a decline in Serbian exports of goods and services of 8.5% this year, followed by an increase of 13.8% next year.
According to the Commission’s forecasts, imports will also decrease by 9.4% this year while they will see a massive leap forward of 16.7% next year.
The executive body of the European Union estimates that the unemployment rate in Serbia will reach 12.7% this year and fall to 10% in 2021, while when it comes to inflation, it is estimated that it will slow down to 0.9% this year and then return to 1.9% towards the end of the year.
The document also announces growth in public debt to 62.2% of GDP in 2020, and a reduction to 59.5% next year, while the budget deficit will temporarily increase to 7.7%, and then it is expected to fall to 2.2%.
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