World Bank forecasts economic growth for Serbia in 2013

Economic forecasts for Serbia for 2013 are mildly optimistic and certain economic growth is expected, World Bank economists assessed.

However, the quality of economic policy will determine the extent to which that growth will be positive.

World Bank Coordinator for Western Balkan Zeljko Bogetic stated that the year ahead would be better for the region and Serbia than the previous one, adding that the economic growth was expected to reach about 2 percent.

Explaining why positive trends were expected in Serbia in 2013, he stressed that economic trends in 2012 had been affected by one-off negative factors such as extremely cold winter, drought, as well as recession in Eurozone countries.

Also, while the quality of economic policy dropped significantly in 2012, budget deficit, public debt, inflation and economic uncertainty rose, which all together caused a recession in the country, Bogetic said at the presentation of the World Bank's publication "Global Economic Forecast."

According to him, now is the right time to make a turn and the 2013 budget is a step in a good direction.

Bogetic said that the main challenges for the region and Serbia in the following period were the implementation of fiscal consolidation, improvement of structural policies, and the lowering of high unemployment rate.