In July 2024, Serbia’s economy exhibited generally robust performance, with notable exceptions in electricity production and agriculture, alongside rising inflation, according to the latest issue of Macroeconomic Analysis and Trends.
The magazine’s experts report that Serbia’s real GDP grew by 4.2% over the first seven months of 2024. Industrial production increased by 4.6% year-on-year, with the processing sector seeing an 8.5% rise.
However, agriculture faced challenges, with an estimated 4% decline in added value over the same period. The ongoing drought is expected to exacerbate this decline by year-end.
Foreign trade value increased in July, reversing the trend of the previous two months, driven by a rise in exports, although imports grew faster.
Retail trade turnover and average wages continued to grow year-on-year. However, inflation increased from 3.9% to 4.3% in July, driven by rising prices for certain processed foods and services.
According to MAT economists, the annual inflation rate will remain within the National Bank of Serbia’s target range of 3% plus or minus 1.5%.
For May, June, and July 2024, Serbia’s inflation rates were higher than the EU average but lower than those of only two EU member states. Serbia’s inflation rates for these months were 4.5%, 3.9%, and 4.3%, compared to the EU’s 2.7%, 2.6%, and 2.8%, respectively.
Among the EU’s 27 members, only Belgium and Romania had higher inflation rates than Serbia. Belgium’s inflation was 4.9%, 5.4%, and 5.4% for the three months, while Romania’s rates were 5.8%, 5.3%, and 4.8%.
