November 1 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) increased on Thursday its projection for Serbia's 2018 economic growth to 4.2% from 2.9% envisaged in May.
"Faster growth is to be supported by further strengthening of consumption and investment. The risks to the projection are balanced and mainly relate to the implementation of reforms envisaged under the IMF’s PCI and the further pace of Eurozone growth," the lender noted in its latest Regional Economic Prospects report.
Serbia's economic growth is projected to slow to 3.5% in 2019, the EBRD said.
After a modest growth in 2017 of almost 2%, the economy expanded by 4.9% year-on-year in the first half of 2018 on the back of stronger domestic demand, primarily higher investment. Private consumption also kept recovering, while imports, on the other hand, continued outpacing exports, the bank noted.
The EBRD predicts economic growth in Southeastern Europe (SEE) to stand at 3.5% in 2018 and 3.2% next year.