November 4 (SeeNews) - Serbia's gross domestic product (GDP) is expected to increase by 6.5% in 2021, the European Bank for Reconstruction and Development (EBRD) said on Thursday, improving its June forecast.
"All main sectors of the economy are growing with the exception of agriculture, which remains weak since the beginning of the year. The strong expansion of exports and industry reflects the rebound of the euro area, Serbia’s main trading partner. Robust household consumption growth has followed a period of pent-up demand," the EBRD said in the latest edition of its Regional Economic Prospects report.
The EBRD projected a 6.0% increase of Serbia's GDP in 2021 in the June edition of its Regional Economic Prospects report.
The bank expects Serbia's economic growth to slow to 4.3% in 2022, the EBRD said on Thursday.
"Near-term economic prospects are positive, though uncertain given the nature of the pandemic, slow speed of vaccinations and dependence on external markets," the bank noted.
For the Western Balkans region, the EBRD forecasts economic growth of 6.4% in 2021 and 4.0% in 2022.
Serbia's economic output shrank by 1.0% in 2020.