Industrial production in Serbia in July and August this year grew rapidly, even in the processing sector, despite geopolitical tensions and the decline in economic activity in the Eurozone, it was stated in the journal Macroeconomic Analysis and Trends (MAT) in its November edition.
“The total contribution of the industry to the real year-on-year growth of the gross domestic product (GDP) of about 3.5 percent in the third quarter of this year equaled the contribution of agriculture and construction,” the economists of that magazine stated.
They added that the lower global demand “contributed” to the continuation of the reduction in foreign trade dynamics, with the fact that in September, for the first time after the culmination of the pandemic, the drop in goods imports was accompanied by a reduction in goods exports.
A year-on-year decrease in the value of foreign trade exchange in euros was registered is, as stated, the sixth month in a row.
“In the first nine months of this year, approximately four fifths of merchandise imports were covered by exports.” Under the influence of lower imports, the balance of payments position is improving, growing foreign exchange reserves, but also decreasing budget receipts based on value added tax (VAT)”, it was stated in the analysis of economic trends.
It was pointed out that the slowdown in inflation has positive effects on the annual calculation of real wages, which have been growing since June. After a twelve-month slump, as stated, the growth trend of real retail sales is also on the upward trajectory.