World Bank: Serbia's economic growth 2.3% in 2023, in the medium term 3% - Inflation will return to the target range of 4.5% next year

Source: Beta Friday, 07.04.2023. 13:47
(Photo: bakdc/shutterstock)
Serbia's economic growth this year will be 2.3%, the same as last year, and it should reach 3% next year, the World Bank estimated in its latest report for the Europe and Central Asia region.

- In the medium term, the economy is expected to grow at a rate of around 3% per year. The main driver of GDP growth will be consumption and to some extent investments, while it is projected that imports will grow faster than exports - the report states.

Forecasts show that inflation will persist until 2024, when it will return to the target range (1.5 to 4.5%).

Prolonged inflationary pressures, according to the World Bank, would further reduce the disposable income of households, which would in turn reduce demand and threaten economic growth, but also increase the cost of financing.

Another risk to economic growth is related to the economic prospects of the EU and other trade partners of Serbia.

Domestic risks are related to national and regional political events and involvement in state enterprises.

- In order to resist such risks and achieve faster growth, Serbia needs to implement structural reforms, improve the quality of education, increase productivity, especially by attracting high-quality foreign direct investments and improve the business environment - the World Bank pointed out.
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