Country Economic Forecasts - Serbia
Stronger investment (especially in construction) and consumer demand lifted Q2 GDP growth to 4.8%, but also pushed inflation up towards 3%. As a result of the strong Q2, we have raised our 2018 growth forecast to 4.6%. But the pace is still expected to slow to some 3% a year in 2019-21 as labour supply constrains business expansion and rising imports cut the boost from external trade. But emergence of new export-generating sectors will ensure sustained recovery, underpinned by low-cost skills and EU trade opportunities that have captured a large share of the region’s FDI.