MAT: Serbia’s GDP grows 4.3% in first five months of 2024

The real growth of the gross domestic product (GDP) in Serbia in the first five months of 2024 is 4.3% compared to the growth in the same period last year, but the year-on-year inflation in May was 4.5% in Serbia and 2.7% in the EU, it is said the latest issue of the magazine Makroekonomske analize i trendovi (MAT).

– In April and May, a relatively strong economic dynamics were kept, despite the low number of work days due to the holidays, so the y-o-y drop of industrial production of 1.1%, the drop of the export of goods of 3.3% and the lowering of the overall external trade are not surprising – MAT writes.

It is added that, when that seasonal factory is excluded, the industry “is still holding up well, and the other production sectors, except for energy, are also recording a y-o-y real growth of added value.”

– In the first five months, the fiscal result was RSD 26.7 billion better than in the same period last year. A substantial y-o-y growth of salaries and a growth of retail turnover were recorded as well – the magazine says.

In May, the y-o-y inflation, in line with the earlier expectations, slowed down to 4.5%, so the growth has returned within the target bands of the National Bank of Serbia of 3%, plus-minus 1.5%.

The NBS, as said, considering the further easing of inflation pressures, started the relaxation of monetary conditions, the key policy rate was reduced by 25 base points to the level of 6.25%, the deposit facilities rate was lowered too, to 5%, and the credit facilities rate was lowered to 7.5%.

The inflation in May 2024 was lowered both month-on-month and year-on-year. In April and May, month-on-month inflation of 0.7% and 0.4% was registered, and year-on-year inflation amounted to 5% and 4.5% respectively.

In May 2024, Serbia had a higher y-o-y inflation than the EU average, and lower y-o-y inflation than two EU member states.

In May, the year-on-year inflation was 4.5% in Serbia and 2.7% in the EU.

Furthermore, in May 2024, the y-o-y inflation was lower in Serbia than in Belgium and Romania, where it amounted to 4.9% and 5.8%.

Ekonomski Institut a.d. Beograd

Narodna banka Srbije Beograd

Makroekonomske analize i trendovi

MAT

National Bank of Serbia

real growth of gross domestic product

year on year inflation

GDP