Serbia’s economic growth slowed down due to high inflation

Economic growth in Serbia will be 1.9 percent in 2023, while GDP growth will be 3.0 percent in 2024, according to the European Commission’s spring forecast.

Economic growth in Serbia will slow down in 2023 due to high inflation affecting private consumption and real incomes, and will accelerate in 2024, the EC forecasts.

Economic growth will be primarily influenced by the growth of consumption and a slight increase in the number of investments in the coming period.

Serbia is expected to improve its export performance in 2023 given the recent foreign direct investments.

The inflation rate in Serbia was constantly on the up in 2022 and continued into 2023, when it reached 16.2 percent in March compared to the same month last year, the EC reminds.

Inflation in Serbia will peak this spring, and it is expected to stabilize by the end of the year and fall to single digits in 2024.

Inflation will be reduced under the influence of tighter monetary policy in Serbia and the world, as well as the favourable product prices, adds the EC.

The Serbian budget deficit and the share of public debt in the country’s GDP will continue to decrease in 2023 and 2024, due to the growth of nominal GDP and less capital being transferred to state energy companies, according to the EC.

Serbia’s budget deficit in 2022 amounted to 3.1 percent of GDP, while the share of public debt amounted to 55.6 percent of GDP, the EC reminds.

The European Commission expects that unemployment in Serbia will gradually decrease, from 9.4 in 2022 to 9.3 percent in 2023 and 9.0 percent in 2024.

(Biznis i Finansije, 16.05.2023)

This post is also available in: Italiano

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