EBRD lowers prognosis of Serbia's growth

The European Bank for Reconstruction and Development (EBRD) said today Serbia's economy had stabilized but that its growth was still poor. The bank put the number at 2.1 percent for 2011 and 2012. EBRD lowers prognosis of Serbia's growth EBRD's expectations in July were that Serbia's economy would grow by 3.3 percent in 2011 and 4.1 in 2012. Pre-election spending could boost a short-term economic growth, but some great risks still remain, mostly caused by Serbia's exposure to the Euro area, according to EBRD's latest report on regional economic expectations. Serbia's inflation is still higher than the rest of the region, the document states, adding that the International Monetary Fund's continued support provides significant protection for the country. The expectations of economic growth in the region have dropped the most for Serbia, Albania and Romania because those countries are exposed significantly to Greece's struggling economy. Of all the countries of the former Yugoslavia, EBRD expects the highest growth in Macedonia, 3 percent in 2011 and 2.4 in 2012, which is a change from the July prognosis of 3.1 percent in 2011 and 3 percent in 2012. Montenegro is next, with 2 and 2.6 percent, going down from July's 2.1 and 3 percent. Bosnia-Herzegovina is ranked third with 2.1 and 2.3 percent, which was 2 and 2.5 back in July. Slovenia's economic growth is expected to be the lowest - 1 percent in 2011 and 0.5 in 2012. Croatia should record 0.5 and 1.9 percent.

EBRD lowers prognosis of Serbia's growth

EBRD's expectations in July were that Serbia's economy would grow by 3.3 percent in 2011 and 4.1 in 2012.

Pre-election spending could boost a short-term economic growth, but some great risks still remain, mostly caused by Serbia's exposure to the Euro area, according to EBRD's latest report on regional economic expectations.

Serbia's inflation is still higher than the rest of the region, the document states, adding that the International Monetary Fund's continued support provides significant protection for the country.

The expectations of economic growth in the region have dropped the most for Serbia, Albania and Romania because those countries are exposed significantly to Greece's struggling economy.

Of all the countries of the former Yugoslavia, EBRD expects the highest growth in Macedonia, 3 percent in 2011 and 2.4 in 2012, which is a change from the July prognosis of 3.1 percent in 2011 and 3 percent in 2012. Montenegro is next, with 2 and 2.6 percent, going down from July's 2.1 and 3 percent. Bosnia-Herzegovina is ranked third with 2.1 and 2.3 percent, which was 2 and 2.5 back in July.

Slovenia's economic growth is expected to be the lowest - 1 percent in 2011 and 0.5 in 2012. Croatia should record 0.5 and 1.9 percent.