EBRD upgrades Serbia's 2021 GDP growth projection to 6%

"GDP growth of 6% is forecast for 2021, mainly on the back of recovery of consumption and increase in public investments," the EBRD said in the latest edition of its Regional Economic Prospects report.

The EBRD projected a 3% increase of Serbia's GDP in 2021 in the September edition of the report.

The bank expects Serbia's economic growth to slow to 3.5% in 2022, as the economy is expected to return to the pre-pandemic speed of expansion and fiscal consolidation might commence.

"Risks to the forecast are balanced. They relate primarily to the pace of recovery of external demand and speed of implementation of public infrastructure projects and structural reforms," the EBRD said.

Serbia's GDP shrank by an annual 1.0% in 2020.

For the Western Balkans region, the EBRD expects economic growth of 5.1% in 2021 and 3.8% in 2022.