The World Bank had approved a financial guarantee to Serbia of up to Euro 300 million ($400 million), in February, to help the country to support its budget and refinance its debts at a reduced cost.
Serbia and the EU signed bilateral protocol on the liberalization of markets for goods and services within the framework of Serbia’s accession to the World Trade Organization (WTO) in January.
In accordance with the data from the Statistical Office of Republic of Serbia, the retail trade turnover in the Republic of Serbia in the period January – June 2011, compared to the same period 2010 decreased by 1.9% at current prices and by 13% at constant prices.
The industrial production in the Republic of Serbia in June 2011, when compared to June 2010, increased by 3.3% and inrelation to 2010 average, it increased by 4.4%. In the period January- June 2011, relative to the same period 2010, industrial production increased by 4.8%.
The average net salaries and wages paid in the period January – June 2011 in the Republic of Serbia, compared to the average net salaries and wages paid in the period January – June 2010, rose by 10.6% in nominal terms and dropped by 2.2% in real terms.
Unemployment rate in April 2011(22.2%), increased by 3%, compared to October 2010, while in the city of Belgrade it amounted to 18.9%
Policy rate reached its’ peak as the National bank of Serbia Monetary Policy Committee rose the key policy rate by quarter of the percentage point in March, when it equaled 12.50 percent. June brought a slight relaxation with a quarter of a percent, marking a year to date change of 50 basis points, and at the end of H1, the policy rate is standing at 12%.
According to the National Bank of Serbia, inflation has reached its maximum in the second quarter of this year, after which it is expected to slowdown and approach the upper limit of the tolerance of the goal. Inflation decline from mid-2011 is expected to come as a result of past monetary policy measures, weakening of the cost-push pressure on food prices, low aggregate demand and stronger dinar.
Consumer prices in June 2011 increased by 12.7% in relation relation to June 2010, while the inflation is expected to return within the target tolerance band in the first half of 2012, and come close to the target midpoint in the second half of that year (end-2012 target: 4±1.5%).
Total annual GDP in 2010, obtained as the sum of four quarters, increased by 1.8%, when compared to 2009. The real GDP growth in the 1st quarter of 2011, compared to the corresponding period of the previous year, amounted to 3.4%. According to seasonally adjusted GDP data, the economic performance increased by 1.5% in the first quarter of 2011, as compared to the previous quarter.
Belgrade retail market
In accordance with the official data published by the Statistical Office of the Republic of Serbia, retail trade turnover in Serbia in June 2011 compared with June 2010, decreased by 5.5% at current prices and by 16% at constant prices. Turnover of retail trade in period January- June 2011, compared to the same period of 2010 decreased by 1.9% at current prices and by 13% at constant prices. In terms of turnover by type of goods for Q1 2010, food and non-alcoholic beverages accounted for the largest share of total turnover with 42.3%; followed by utilities costs (housing, water, electricity, gas and other fuels) with 16.4%. Both types have marked a share growth, as food and non-alcoholic beverages increased by 1.2%, while overhead costs rose by 1.7%, compared to their share from Q3 2010.
Source property-magazine.eu
