EC cuts forecasts for us: War consequences on Serbia’s economic growth
Serbia’s economic growth will be decreased this year because of the economic consequences of Russia’s aggression against Ukraine and it will reach 3.4% after strong 7.4% in 2021, the European Commission (EC) forecasts.
In the European Union, real gross domestic product (GDP) growth will also be lower than it was stated in previous autumn forecasts, as a consequence of new challenges related to the war in Ukraine, according to the report „Spring Economic Forecasts 2022: Russian Invasion – Test for EU Economic Resilience“.
When it comes to Serbia, next year, the country can count on much more moderate growth than in 2021 of 3.8 percent. The EC also points to great uncertainty and significant risks to the growth of Serbia’s economy.
Analysts expect the economic consequences of the Russian aggression on Ukraine to affect growth, especially through higher raw material prices, affecting the actual available income and reduced dynamics of trade with Serbia’s main trading partners in the EU.
The forecast says that growth will mostly be generated by private consumption and investments, and that inflation will peak in the middle of this year, while it will slow down from autumn.
Izvor: RTS
