The gross domestic product of Serbia will grow by 2.5% in 2016 and by 2.7% in 2017, following the jump of 2.9% in the first half of 2016, the European Bank for Reconstruction and Development expects.
With this, the EBRD has revised up it May projections, raising the estimate of the growth of Serbia by 0.7% in 2016 and by 0.4% in 2017.
The main positive impact to the projection, as the report says, might be the improvement of production in the recently privatized Zelezara, where the Chinese owner has announced ambitious investments and production plans.
At the same time, the future development of the situation regarding petroleum and the possibility of low external demand, especially in the car market, could hamper Serbia's economic growth in the next year, according to the EBRD.
– Medium-term prospects are favorable, but will depend on the pace of reforms needed to further improve the investment climate, support NPL resolution and corporate restructuring with a view to unlocking credit growth, and speed up the implementation of major infrastructure projects – the report says.
As regards the countries of the region, the EBRD's growth projections for Bosnia and Herzegovina are 2.7% in 2016 and 3% in 2017, and, for Croatia, 2.3% in 2016 and 2% in 2017.
According to the EBRD, the growth in Slovenia will be 2.2% in 2016 and 2.3% in 2017, in Bulgaria 2.8% in both 2016 and 2017, in Macedonia 2.1% in 2016 and 3% in 2017, and in Montenegro 4% in 2016 and 3.5% in 2017.