Economic activity in Serbia accelerated until May this year, when it began to decline, according to the latest issue of the journal Macroeconomic Analysis and Trends.
“The trend of industrial production, total industry and processing industry went down in May, although the year-on-year growth was high in that month as well, but less than what the low base from last May would require,” the MAT states. In May, a year-on-year decline in production was recorded in six areas: in the food industry four percent, tobacco industry 17, clothing production 16, pharmaceutical industry 16, computer production 14, furniture production 16 percent.
It is added that the foreign trade exchange had a high year-on-year growth in May as well, but in that month the import growth rate exceeded the export growth rate, which was significantly higher than the import rate in the entire five-month period. These changes, as it is stated, are not linear, but negative changes have occurred in certain areas or branches within those areas with high participation, so the continuation of growing tendencies in other areas could not completely cancel the negative tendencies.
The coverage of exports by imports in all five months of this year amounted to 78.1 percent, but fell to 73.4 percent in May.
Inflation has also accelerated, and in May, the year-on-year growth of consumer prices was the largest since 2017. In that month, almost all products from the consumer basket went up, food products went up by one percent, fresh fruit went up by 5.2 percent, with the price of strawberries rising by 72.4 percent. Non-food products have also become more expensive, primarily medicines, energy and services.
Serbia had lower year-on-year inflation than six EU countries in April, and lower than three countries in May 2021, Danas reports.
