NBS: Serbian 2024 GDP up by over 18 pct compared to pre-pandemic level

BELGRADE - Serbia demonstrated resilience to various challenges in 2024 as well, preserving macroeconomic and financial stability and, by the year's end, its GDP increased by over 18 pct compared to the pre-pandemic level, the National Bank of Serbia (NBS) has said, quoting figures from a flash estimate of 2024 macroeconomic trends published by the national statistical office RZS.

"Serbia recorded real GDP growth of 3.9 pct in 2024, reflecting upturns in the industry, construction and services sectors.

The physical volume of industrial production grew by 3.0 pct, with manufacturing posting 4.4 pct growth despite the overhaul of the NIS Refinery in Pancevo and weak external demand, particularly from the euro area.

Mining production increased by 7.5 pct, while the energy sector posted a 6.0 pct decline, driven by reduced hydropower potential due to the drought.

The value of construction works performed rose by 8.6 pct, consistent with real growth in total fixed investment of 9.2 pct.

The service sector growth is also evident, as indicated by a 5.9 pct real increase in trade turnover.

Hospitality turnover expanded by 8.3 pct, transportation activity by 9.3 pct, while tourist overnight stays were 1.4 pct higher than the previous year. In contrast, agricultural output declined by 8.8 pct, due to a severe drought," the central bank said in a statement.

"Labour market developments in 2024 were favourable, with continued employment growth, declining unemployment, and real growth in wages and the living standards.

Average nominal wage rose by 14.2 pct, with a real increase of 9.2 pct, preserving the purchasing power of the population. According to the Labour Force Survey, the unemployment rate fell to 8.1 pct in Q3, while the employment rate reached 51.9 pct.

Average annual inflation in 2024 stood at 4.6 pct, while December y-o-y inflation was 4.3 pct – within the NBS target band of 3±1.5 pct.

Inflation continued to decelerate this year as well, primarily due to lower energy prices and a slowdown in food price growth.

Other contributing factors included the effects of monetary policy measures, lower imported inflation and reduced inflation expectations," it said.

When it comes to external trade trends, the RZS estimates indicate that goods exports grew by 1.7 pct in 2024, despite reduced external demand, the NBS also said.

"This primarily reflects the resilience of exports, owing to their sectoral and geographic diversification.

On the other hand, flash estimates suggest that goods imports have risen by 5.6 pct at the year-level, driven by the continuation of the investment cycle, higher imports of equipment and intermediate goods, as well as increased imports of consumer goods resulting from a higher disposable income of the population," it noted.