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BELGRADE (Serbia), November 6 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said it is cutting its forecast for Serbia's economic growth in 2019 to 3.2% from 3.5% predicted in May.
The bank has also lowered the forecast for Serbia's gross domestic product (GDP) growth next year to 3.5% from 3.8%, the EBRD noted in its November 2019 Regional Economic Prospects report.
"Unfavourable trends in industrial production continued in the first half of 2019, with industrial output declining by 2.0% year-on-year on the back of falling production in mining and manufacturing, while utilities and agricultural output stagnated," the EBRD said.
Domestic demand should remain the main growth driver, while net exports are most likely to continue their negative contribution.
"The economic slowdown of the main trading partner, the European Union, and the slow pace of reforms within the country might act as a drag on growth in the near term and make it more volatile," the EBRD said.
Regarding the region of Southeast Europe (SEE), the EBRD has upgraded its 2019 economic growth forecast to 3.3% from 3.0% predicted in May, following a slowdown to 3.4% in 2018 from 4.3% in 2017. In 2020, growth in the SEE region is also seen at 3.0%.
The SEE region in the EBRD's report comprises Bulgaria, Cyprus, Greece, Romania, Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia.