GDP of Serbia grows by only 1.2% in first half of 2017 – Adverse weather conditions slow down economy

The Serbian economy has realized a growth of the GDP by merely 1.2%, far less than the countries of central and eastern Europe, where the GDP has risen by 4.2%. Milojko Arsic, professor at the Faculty of Economics, pointed this out at the presentation of the new issue of the Quarterly Monitor on Friday, September 22, 2017.

The magazine's authors estimate that, after a slow growth in the first half of the year, the growth of GDP in 2017 will range between 1.5 and 2%.

– Adverse weather conditions, which lead to a drop in agricultural production, might explain roughly a half of the difference between the growth of Serbia's economy and that of the countries in the region – Arsic said.

– The rest is a consequence of a less favorable economic environment and the lack of a timely reaction of within the fiscal policy to the changes in the economy and the public finances.

Nevertheless, he estimates that, if agriculture recovered the next year to its average level, the economy might expect a growth of around 4% in 2018.

Quarterly Monitor

Milojko Arsic

gross domestic product of Serbia

GDP of Serbia

economic growth of Serbia

agricultural production

fiscal policy