World Bank expects Serbian economy to grow by around 4 pct over medium term

BELGRADE - The World Bank expects the Serbian economy to grow at a rate of around 4 pct over the medium term, primarily due to consumption and, in part, investments.

Speaking at a presentation of the World Bank's regular economic report for the Western Balkans, World Bank Senior Economist Lazar Sestovic said the projected y-o-y growth for 2024 was 3.8 pct, up from the previous projection of 3.5 pct, due to the unexpectedly good performance of the construction and services sectors in the first half of this year.

The World Bank expects Serbian inflation to gradually decline and remain within the National Bank of Serbia target band - below 4 pct.

World Bank experts also said a higher fiscal deficit was expected after the Serbian government had decided to practically suspend the implementation of fiscal rules until 2029 in the context of large-scale public spending aimed at infrastructure construction.