Serbian economy expands 0.5% y/y in Q3, up 1.9% in 2011.

By bne IntelliNews January 4, 2012
The Serbian economy has expanded by a real 1.9% in 2011 after growing 1% a year earlier, preliminary data of the statistics office showed. The government anticipated a 2% GDP growth for last year. The GDP rose 0.5% on the year in the third quarter after increasing an annual 2.5% in the second quarter, the statistics office said in a statement. The highest growth of gross value added in 2011 was registered in the sectors of electricity, gas, steam and air conditioning supply, construction and mining and quarrying. The steepest drop of gross value added was recorded in the sectors of trade and administrative and support service activities. In the third quarter alone, the section of information and communication registered the highest gross value added growth, of 9.3%. It was followed by construction with a 9.2% increase and the transport sector with 2.4%. The biggest fall in the third quarter gross value added was recorded in the section of trade, of 7.7%, and the section of manufacturing, of 1.6%. The seasonally adjusted value of the third-quarter GDP remained unchanged from the second quarter. The Serbian economy grew by an annual 1.6% in the third quarter of 2010 and by 3.7% in the first quarter of 2011. The government expects 1.5% economic growth in 2012. Prime Minister Mirko Cvetkovic said he sees no reasons for a further cut in the economic growth outlook and hopes the negative impact of the global economic downturn on Serbia will start to lessen with the resolve of the eurozone crisis. Cvetkovic told news agency Tanjug in a January 3 interview the next two to three months will be crucial for the fate of the joint European currency and its effects on Western Europe and consequently on Serbia. "If we need to take any additional safety measures, we will do it but I still hope the crisis will slowly start to fade." Cvetkovic said the recession in the eurozone countries could flow into Serbia via shrinking foreign direct investment and via declining exports to Western Europe.

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