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Home/News/World Bank lowers Serbian economy growth forecast

World Bank lowers Serbian economy growth forecast

Thanks to the continued fiscal adjustment, Serbia is now running a significant fiscal surplus, the World Bank has said it a new report.

However, said the October 2017 Europe and Central Asia Economic Update Report, growth is slowing down in 2017, mainly due to unfavorable weather conditions – severe winter and a long drought – and a slowdown in investment.

According to the report, Serbia’s economy – that grew 2.8 percent in 2016 – will expand 2.3 percent this year.

In June, the World Bank forecast three percent GDP growth, with that figure now being forecast for 2018, down from 3.5 percent predicted in June.

In 2019, Serbia’s economy will grow 3.5 percent, the international financial institution now says.

“Poverty (living on income under USD 5.5/day, PPP) is estimated to have declined from 24.1 percent in 2014 to 23.4 percent in 2016. Going forward, growth is expected to reach 3-4 percent, although risks remain, especially from policy reversals related to previous fiscal stability program,” the report said.