World Bank: Serbian economy expected to grow 3.5 to four percent in coming years

The expected rate of Serbia’s economic growth in the coming years will be around 3.5 to four percent, the World Bank (WB) announced today. This growth, as said, will be a result of consumption, but also investments to a certain extent.

It is added that downside risks relate to the performance of SOEs which might require support from the budget, external demand for Serbian exports might decrease given uncertainty in trade policy, and the impact of extreme weather on agriculture and infrastructure could be significant.

– Inflation is expected to decline gradually and stay within the NBS target band over the medium term. Sustained economic growth and targeted social assistance will become essential to ensure further poverty reduction – the WB estimates.

As said, growth in 2024 is estimated at 3.9 percent, y/y, higher than the previously projected 3.5 percent, thanks to a better-than-expected performance of the construction and services sectors in the first half of the year.

In 2024, the poverty rate dropped to 7.7%, and as added, it is expected to lower further at a slightly reduced tempo.

Svetska Banka-WB Beograd

World Bank

economic growth of Serbia