Serbia’s GDP grew 5.7% in 2024

The Macroeconomic Analyses and Trends (MAT) monthly newsletter said on Monday that Serbia’s GDP grew by some 5.7 percent in real terms in the first two months of the year but added that inflation is twice as high as in the European Union.

It said that a rise in year-on-year external trade was recorded in February following 10 months of a downward trend. MAT added that the export-to-import ratio stood at 79.3 percent compared to 75.7 percent a year earlier.

“The key issue is whether new investments and domestic private spending will be enough to help the economy resist pressures,” it said.

MAT experts believe that monthly inflation rose in February solely due to temporary causes. Inflation in January and February stood at 6.4 percent and 5.7 percent respectively.

“In February, the year-on-year inflation that started growing in April 2023 continued to decrease. Such a trend will continue, as the National Bank of Serbia expects the year-on-year inflation to return to the 3 percent target, with a deviation of plus or minus 1.5 percent next month”, stated the experts at MAT.

They also noted that the processing industry recorded an 8.9 percent growth.

“The key dilemma is whether the contribution of new investments and domestic private consumption in Serbia will be sufficient for the economy to withstand the pressure throughout 2024, especially because the crisis in the eurozone’s manufacturing sector has further deepened. In January 2024, the year-on-year decline in the physical volume of production in the eurozone is reached 7.7 percent, and in Germany 5.4 percent,” MAT experts concluded.

(Forbes Serbia, 09.04.2024)


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