EC projects drop in unemployment in Serbia to 14.3% in 2017 – Economic growth forecast stays at 3%

The European Commission published on February 13, 2017 that it had kept the forecast of Serbia's economic growth for 2017 and 2018 at 3% and 3.3% respectively, while at the same time projecting a bigger drop in unemployment. According to the winter economic forecast, the unemployment rate in Serbia will drop to 14.3% in 2017 from last year's 16.1%, and to 12.6% in 2018.

These are considerably better projections than those from the report of this autumn, when unemployment rates of 15.6% for 2017 and 15% for 2018 were projected.

Private consumption in Serbia in 2017 will, according to EC, rise by 2.1% and by 3% in 2018, which is an acceleration compared to last year's 1.2%, whereas the state consumption will rise by 2.5% and by 2.4% in 2018, compared to the growth of 2.7% in 2016.

Export of goods and services will grow by 7% in 2017 and by 6.7% in 2018, compared to the growth of 10.9% in 2016, whereas import will rise by 6% and 6.3%, compared to the growth of 7.7% in 2016.

The public debt of Serbia was reduced for the first time last year after having grown constantly for several years, as a result of the efforts towards carrying out fiscal consolidation, the report says. However, the pace of the fiscal consolidation will, according to EC, slow down starting this year, but will be sufficient for further reduction of the public debt.

As for the countries of the region, GDP of Croatia will, according to EC, grow in 2017 by 3.1% and by 2.5% in 2018, whereas Montenegro will see the economic growth of 3.7% and 3.1%. The projections for 2017 and 2018 are 4.4% and 3.7% for Romania, 3% each for Slovenia and 2.9% and 2.8% for Bulgaria.

European Commission Brussels

Delegacija Evropske unije u Republici Srbiji Beograd

economic growth of Serbia

economic growth

growth of gross domestic product of Serbia

GDP of Serbia

unemployment in Serbia

consumption

export from Serbia

import to Serbia

public debt of Serbia

fiscal consolidation