Serbian industrial production increased by 2.4% year-on-year (y/y) in January 2013, driven by double digit growth in the mining and quarrying sector, up by 11.4% y/y, and the manufacturing sector, particularly automotive, up by 3.2%.
“Serbia’s industrial sector has been struggling since mid-2011, constraining economic growth as domestic demand has failed to compensate for the lack of external demand for manufactured goods. Although the January output figures partially reflected low base effects (in January 2012, output contracted by 2.7% y/y), output at the Fiat plant, which started producing the new 500L model in mid-2012, is helping to underpin the recovery in Serbia’s industrial sector,” says IHS Global Insight.
“Going forward, the base metals sector could also contribute to the nascent industrial recovery. The government recently revealed plans to restart one furnace at Zelezara Smederevo; the plant was closed down in July 2012 after US Steel sold it back to the government for USD1 after suffering losses on the investment. This should help industrial production achieve growth rates of approximately 3.5% this year, after contracting by 2.9% in 2012.”
Source Balkans
