May 11 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) affirmed on Wednesday its projection for Serbia's 2016 economic growth at 1.8%, fuelled by stronger EU demand.
Serbia's economy grew 0.7% last year, despite a programme of fiscal adjustment and on the back of low base after the floods in 2014, increasing private investment and pick-up in exports., the EBRD said in its latest Regional Economic Prospects report.
"Private investment will continue to be the main growth driver, supported by a gradual recovery of consumption," the lender noted, adding that the upside risk for the projection, that could add 1.0-1.5 percentage points to growth in 2017, comes from potential upscaling of production in the recently privatised Zelezara Smederevo steel mill, if the new Chinese owner's ambitious investment and production plans materialise.
Serbia's economy is expected to grow 2.3% in 2017.