February 22 (SeeNews) - Serbia's central bank, NBS, said on Wednesday it expects the country's economic growth rate to rise to 3.0% in 2017 from 2.7% in 2016 on the back of implementation of infrastructure projects and improved business environment.
Serbia's economic growth is forecast to accelerate further to 3.5% in 2018, as increasing investments will support a sustained rise in demand and exports, NBS said in an inflation report for the fourth quarter of last year.
The economic growth will also be encouraged by an expected rise in employment and wages in the country, the NBS said.
The central bank expects the annual inflation rate in Serbia to remain within the band of 1.5%-4.5% until the end of 2018, as a result of the recovery of crude oil prices and the rise in domestic demand.
The European Commission (EC) said earlier this month that it would unchanged its forecast for Serbia's economic growth in 2017 at 3.0% on the back of strengthening domestic demand. Growth is expected to stand at 3.3% in 2018 as private consumption is forecast to rebound soundly, supported by continuous gains in private employment and wages, buoyant lending and markedly improved expectations, the Commission said.
In November, NBS said it expects Serbia's GDP to grow by 2.7% in 2016 backed by the performance of the agriculture sector which expanded above expectations.
Serbia's statistical office will release on February 28 detailed data on the country’s economic growth in the fourth quarter of 2016.