Serbia's industrial production increased for the second consecutive month in June when it went up 5.7% y/y, following an increase of 6.2% y/y in May, the country's statistics office reported on July 31.

The Serbian government’s main goal is to attract as many foreign investors as possible to relocate their production to Serbia. This would boost industrial production and create new jobs.

The latest statistical office data indicate that the strengthening in June compared to the same month of 2016 was mainly result of the 16.7% y/y hike in the section of mining and quarrying as well as of the 6% increase in manufacturing. Meanwhile, the electricity, gas, steam and air conditioning supply section remained unchanged.

Across the industrial sector, production volumes increased compared to June 2016 in 19 segments accounting for 69% of total production, while output fell in 10 segments accounting for the remaining 31% of production

The largest influence on industrial production growth in June compared to June 2016 was from manufacture of machinery and equipment, mining of coal and lignite, manufacture of electrical equipment, manufacture of rubber and plastic products, and manufacture of fabricated metal products, except machinery and equipment.

The seasonal adjustment of the industrial production index for June compared to the 2016 average indicates 3.6% growth of the overall industrial production and 5.8% growth of manufacturing.

Meanwhile, the seasonal adjustment of the industrial production index for June compared to May indicates a 2.8% fall of overall industrial production and 2.4% fall of manufacturing.

The statistical office added that industrial production in January-June, compared with the same period of 2016, increased by 2.1%, as a result of the 6.3% increase recorded in manufacturing.

Industrial production in Serbia has improved for two years in a row, growing 4.7% y/y in 2016 after an 8.4% y/y expansion in 2015. Previously in 2014, the country was hit by devastating floods resulting in a 6.5% contraction in industrial production.