In its autumn report on the world economic outlook, the World Bank has again increased its economic growth forecast for Serbia for 2021, from 3.1% in January, to 5% in June and now 6%.
Another report is due by the end of the year while the Serbian government’s forecast for the year-end is 7%.
The World Bank report states that the Serbian economy is recovering from the crisis caused by the pandemic. This is supported by the data which shows that, in the first quarter of this year, the GDP growth was 1.8% higher than in the same period last year and in the second quarter, it was 13.7%.
“The financial support that the Serbian government has given to the citizens and the business sector has had a strong effect on the correction of growth and the results that we have. From the population’s point of view, we have met their demand, while from the economic point of view, we have maintained a high level of liquidity. As a result, the unemployment rate was under control all the time,” Sasa Stevanovic, State Secretary at the Ministry of Finance, told RTS.
According to data collated by the Ministry of Finance, so far, almost two billion euros have been spent on capital projects, not counting public companies and local authorities, while 430 billion dinars have been allocated from the budget, which is unprecedented.
According to some estimates, some 40,000 buildings are under construction in Serbia, making construction the driving force behind economic development. “With its 20 per cent share in the GDP, the construction sector is the biggest driver of development which has never been recorded before or only perhaps in the post-war years. This is truly a golden age for builders,” says Veselin Raznatovic of the Union of Employers of Serbia.
Trade, transport, financial services and information and communication technologies have also contributed to better economic results, while industrial production and agriculture will remain at the originally expected level.
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