European Commission: 3% economic growth and declining unemployment in Serbia in 2017

Serbia is experiencing economic recovery with a GDP growth of 2.8% last year mainly owing to the growing domestic consumption, and an over 10% hike in export – the European Commission says in its report about Serbia.

The EU Commissioner for Economic and Financial Affairs, Pierre Moscovici presented the report containing the European Commission’s economic indicators for the EU members and candidate countries, underlining that the EU continues with its recovery and that, this year, the economic growth could reach 1.7% and, next year, 1.8%.

In its report about Serbia, the European Commission goes on to say that there has been a noticeable growth in exports thanks to FDIs in the processing sector and the stable demand for the Serbian products in the Union.

This year, Serbian GDP is expected to grow by 3%, and in 2018, by 3.3%. Last year, consumer prices in Serbia grew by 1.1%, and this year, the expected growth is 2.4%. In 2018, they are expected to grow by 3.3%.

Unemployment rate 12.6% in 2018

Last year, the unemployment rate in Serbia stood at 16.1% of the work capable population, in 2017, unemployment is supposed to drop to 14.3%, and next year to 12.6%.

Serbia’s public debt in 2016 stood at 73.7% of the national GDP. This year, it is expected to drop to 72.3%, and in 2018, to 69.8%.

Growth of export

In 2016, Serbian exports grew by 10.9%, this year it is expected to grow by 7%, and next year by 6.7%. Last year, import went up by 7.5%, and this year, it is estimated that it will grow by 6%, while in 2018, the import growth is forecast to stand at 6.3%.

Bigger private consumption, modest investments

The European Commission estimates that that domestic demand will boost economic growth along with the bigger private consumption which should grow more consistently in the next few years. The EC’s report also states that “the level of investing is going to remain relatively modest, but it will continue to be an important driving force behind the development”.

(Blic, 13.02.2017)

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