European Commission: Serbia’s Good Results

Serbian economy is slowly getting out of the recessions. This is what the latest quarterly report by the European Commission (EC) about candidate countries for the EU membership state. The analysis also show that, apart from the last year’s low baseline, lower international prices of goods and higher demand contributed to the weaker recession.

The growth is mostly recorded in mining and electricity production which were hit the hardest by last year’s May flooding. Also, construction industry grew by 12.6% while agriculture recorded a 9.4% hike.

A 1% hike in the national GDP in the Q2, relative to the same period last year, also caused the export and investment growth – the document states.

The document also states that the unemployment rate dropped from 21.2% to 18.5%. “Surprisingly, the number of civil servants grew by 32,000 despite the employment ban”, the report says.

In terms of the monetary policy, the inflation is still below the targeted one (between 2.5% and 5.5%), the benchmark interest rate has been reduced by 5% while the Dinar exchange rate is stable. “For the first time since March, the Dinar / Euro exchange rate dropped to 120 Dinars for 1 Euro”.”

With regards to the budget, the report states that the budget deficit had been consolidated by the late August, standing at 44 billion Dinars which is only 1.1% of the expected GDP.

The document also says that, during summer months, a total of 170,000 refugees passed through Serbia. They were mostly from the Middle East. The EC’s report goes on to say that most refugees came in August and September. This lead to the temporary closure of borders with Croatia and Hungary which lasted for several days.

(Politika, 12.10.2015)

This post is also available in: Italiano

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