Serbia's economy contracted by 1.1% y/y in 4Q20

Serbia's economy contracted by 1.1% y/y in 4Q20
By bne IntelliNews March 1, 2021

Serbia’s real GDP fall in the fourth quarter of 2020, compared to the corresponding period of the previous year, amounted to just 1.1%, reported the Statistical Office of the Republic of Serbia on March 1.

Serbia had one of the smallest GDP contractions across the emerging Europe region in 2020. It entered the coronacrisis with robust growth, and while this swung to a sharp contraction in the second quarter of 2020, the strong share of manufacturing in the economy and the relatively small tourism sector compared to regional peers helped minimise the damage to the economy. 

According to seasonally adjusted GDP data, gross domestic product increased by 2.2% in the fourth quarter of 2020, compared to the previous quarter.

Observed by activities, there was a significant real year-on-year fall in the gross value added in construction — 9.1%, as well as for wholesale and retail trade; repair of motor vehicles and motorcycles; transportation and storage and accommodation and food service activities, which was down by 3.6%.

Significant real growth in the gross value added was recorded in industry and water supply, sewerage, waste management and remediation activities — 1.5%, as well as information and communication — 5.5% and public administration and defence; compulsory social security; education and human health and social work activities — 3.9%.

Observed by expenditure aggregates, in the fourth quarter of 2020, compared to the same quarter of the previous year, real growth was noted for the general government final consumption expenditure of 4.6%, the exports of goods and services (2.1%) and the import of goods and services (0.8%).

A real fall of 2.7% was registered for the household final consumption expenditure, non-profit institutions serving households (NPISH) final consumption expenditure (2.9%) and gross fixed capital formation (4.1%).