May 7 (SeeNews) - The European Commission (EC) said on Tuesday it has lowered its forecast for Serbia’s economic growth in 2019 to 3.1% from 3.8% projected earlier, mirroring a slowdown in the country's major trade partners.
Gross domestic product (GDP) growth is expected to quicken to 3.8% in 2020, while the unemployment rate is foreseen to decline to 11% this year from 12.7% in 2018, and to drop further to 9.0% in 2020, the Commission said in its Spring 2019 Economic Forecast published on its website.
Serbia will see growth in exports decelerating this year as a result of slower growth in major trading partners, the Commission said. Still, domestic consumption will continue to be strong thanks to rising wages and bigger budget transfers to households.
"Benign financing conditions are expected to sustain lending growth, while investment activity is set to continue apace," the Commission added. "The fiscal stance is expected to turn expansionary, while the current account deficit and the inflation rate are projected to inch up."
European Commission's outlook on the main economic indicators of Serbia (pct change):
|
2018 |
2019 |
2020 |
GDP |
4.3 |
3.1 |
3.8 |
Private consumption |
3.3 |
3.9 |
3.4 |
Public consumption |
3.6 |
3.8 |
3.2 |
Gross fixed capital formation |
9.2 |
7.8 |
7.5 |
Unemployment rate |
12.7 |
11 |
9 |