World Bank cuts Serbia's 2012 GDP growth forecast to 0.5%.

By bne IntelliNews June 15, 2012
The World Bank has cut its 2012 GDP forecast for Serbia to 0.5% in its latest Global Economic Prospects edition from an earlier estimate of 1.5% made in January. Both the IMF and Serbia's central bank also see the Serbian economy growing some 0.5% this year, while the EBRD expects a mere 0.1% expansion and rating agency Fitch projects stagnation in the Balkan country in 2012. Serbia's Belgrade bank academy BBA stressed in May that the country will remain in recession until the end of 2013 after its economy recorded an annual decline of 1.3% the first quarter of 2012 following two years of growth. The first-quarter GDP was also down 0.5% in comparison with the final quarter of 2011, while the debt crisis in the eurozone and the drop in demand bite Serbia's exports, suggesting no economic feasible expansion in the next year and a half, BBA has said. According to the World Bank report, Serbia's GDP would rise 3% next year and 3.5% in 2014. The country's current account gap is seen shrinking to 8.6% of GDP this year from 9.1% of GDP in 2011 and declining further to 7.9%/GDP next year and 6%/GDP in 2014. The World Bank added that Serbia together with Bulgaria and Macedonia would be the most affected by the Greek banks' deleveraging. The Serbian economy rose by 1.6% last year and by some 1% in 2010 after shrinking 3.5% in 2009.

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