Industrial production in Serbia in July this year increased by 2.7 percent year-on-year, mostly thanks to the production of electricity, it was stated in the new issue of the monthly Macroeconomic Analysis and Trends (MAT).
“That source of stimulus has been exhausted, and the upward growth trend can only be restored by accelerating the production of the processing sector,” said MAT.
In contrast to exports, which continue to grow, imports, as stated, are declining, which has a favorable effect on the narrowing of the foreign trade deficit.
“In the first seven months of this year, approximately four fifths of merchandise imports were covered by exports (78.7 percent), and in July itself 81.3 percent, which is a 5.9 percentage point better result compared to the same month in 2022.” stated MAT.
It is added that because of this, the deficit of the current account of the balance of payments in the first half of the year was lower by 81.8 percent compared to the same period last year.
Inflation, as it was pointed out, decreased both on a monthly and on an annual basis, not only in June but also in July 2023. In May, June and July 2023, Serbia had, as stated, higher annual inflation than the average of the European Union, and lower annual inflation than only one of its members.
“In May 2023, year-on-year inflation in Serbia was 14.5 percent, in June 13.5 percent, and in July 12.4 percent.” Year-on-year inflation in May 2023 in the EU was 7.1 percent, in June 6.4 percent and in July 6.1 percent.