The latest issue of the Macroeconomic Analysis and Trends (MAT) bulletin, published by the Economic Institute and the Chamber of Commerce of Serbia, reveals promising economic indicators for the country. Serbia’s real gross domestic product (GDP) saw a robust year-on-year increase of approximately 5.7 percent in the first two months of this year, surpassing the projected annual GDP growth rate of 3.5 percent.
February 2024 witnessed an impressive 8.4 percent rise in industrial production compared to the same month last year, primarily driven by growth in the manufacturing sector. Additionally, February marked the first year-on-year increase in the value of foreign trade after ten consecutive months of decline.
During the initial two months, around four-fifths of merchandise imports, specifically 79.3 percent, were offset by exports—a notable improvement compared to the previous year’s 75.7 percent.
Serbia also experienced an uptick in foreign direct investment inflows, surpassing figures from the same period last year. Furthermore, the state budget reported a surplus, indicating a positive fiscal trajectory.
The period also saw substantial year-on-year growth in wages and turnover within the retail trade sector.
In terms of inflation, there has been a consistent decrease in year-on-year inflation since April 2023. This downward trend is expected to continue, with the National Bank of Serbia anticipating a return to the target range of 3.0 percent plus or minus 1.5 percent as early as May.
