In 2024, Serbia emerged as one of the fastest-growing economies in Europe. However, imports grew at a faster pace than exports, and inflation in December was lower only than in two EU countries: Hungary and Romania, according to the latest issue of the journal Macroeconomic Analysis and Trends (MAT).
The industrial production in Serbia increased by 3.1% last year, with the processing sector seeing a rise of 4.7%.
“The long-term trend in industrial production remains positive, despite the negative risks stemming from developments in the Eurozone, which is Serbia’s key trade partner,” the report stated.
In December 2024, the value of foreign trade exchange continued to rise for the sixth consecutive month. Overall, the total foreign trade exchange in 2024 grew by 4.1% year-on-year, with exports rising by 1.8% and imports growing by 5.9%.
The report noted that Serbia managed to find alternative markets in China and Turkey to offset the weakened demand from the EU. Without this shift, merchandise exports would have been almost 1.1 billion euros lower.
Last year, Serbia recorded a moderate budget deficit of around 2.2% of the gross domestic product (GDP). At the same time, retail trade turnover grew by 5.4% compared to the previous year.
In December 2024, inflation in Serbia decreased on a monthly basis, while remaining unchanged compared to the same period in the previous year.
Among the 27 EU member states, Romania (5.5%) and Hungary (4.8%) had higher year-on-year inflation in December 2024 than Serbia (4.5%), while Croatia saw inflation at the same level as Serbia.
Year-on-year inflation in the EU was 2.7%, and in the Eurozone, it stood at 2.4%.
