The European Bank for Reconstruction and Development (EBRD) has raised its prognosis for Serbia’s 2011 economic growth from 2.9 to 3 percent compared to its October expectations, according to the EBRD report.
According to the web portal EurActiv Serbia (www.euractiv.rs), the 2010 growth was also corrected in the EBRD January report, moving up by 0.4 percent.
Serbia is one of the countries where important fiscal consolidation measures have been introduced, which gives hope of improved growth prospects in the future but dampens the short-term recovery.
The EBRD states that Serbia, Bosnia-Herzegovina and FYR Macedonia are benefiting from global demand on key metals, while Serbia is also conducting a large-scale programme of infrastructure development.
All countries in the western Balkans will, according to the EBRD’s estimates, register an economic growth, the biggest of which will be registered by Macedonia (3.2%), followed by Montenegro (3.1%), Bulgaria and Albania (2.6%), Bosnia and Herzegovina (2.2%), and Romania (1.1%).
The report also notes that Serbia and Bosnia-Herzegovina have so far met the demands of their arrangements with the International Monetary Fund (IMF), while Macedonia has been granted access to a new IMF instrument, the so called Precautionary Credit Line.
Exports in most countries are growing rapidly reflecting both a base effect from the deep slump in 2009 and renewed global demand for key exports from the region.
Recent figures on foreign direct investments (FDI) from several countries show a dramatic fall relative to 2009, which was itself a weaker year for attracting foreign investment.