GDP in Serbia increased by a real 2.5% y/y in the fourth quarter of 2017, the Serbian Statistical Office announced in a flash estimate released on January 31.
Serbia’s economy was expected to exceed 3% annual growth in 2017, but this now looks unlikely as the agriculture sector has been hit by drought. Prime Minister Ana Brnabic expects the country’s GDP grew 2.5% in 2017 as the government’s short-term measures are expected to compensate for GDP loss caused by the drought.
The World Bank estimates the pace of growth slowed down to 2% in 2017, mainly because of the summer drought which negatively affected the agriculture sector.
In its latest Global Economic Prospects report published on January 10, the World Bank downsized its expectations for 2017 compared to its previous Global Economic Prospects report. Previously, the bank said Serbia’s economy would expand by 3% in 2017.
Serbia’s economy has been growing since the second quarter of 2015, after it previously contracted as a result of the devastating floods that hit the country in May 2014. GDP in Serbia increased by 2.8% y/y in 2016, and by a further 1.3% y/y and 1.2% y/y in the first and the second quarter of 2017 respectively. It then accelerated to 2.1% y/y in Q3.
The statistical office said that more detailed calculations will be published in its quarterly GDP statistical release on February 28.