EC: Serbia slowly emerging from recession

EC: Serbia slowly emerging from recession

In the fall 2015 forecast, experts predict a GDP growth of 0.7 percent this year, set to accelerate in the next two years to 1.4 and 2.5 percent.

"Recent increases in employment were largely driven by successful efforts to reduce informalities and most of the new jobs went into low productivity sectors as retail trade and agriculture. As the economy recovers and the labor market becomes more dynamic, job creation is foreseen to offset potential job losses resulting from reforms in the public sector,” said the forecast, quoted by Tanjug.

The Beta agency noted in its report that the EC said additional reforms are required in Serbia in order to keep economic indicators good and curb public debt growth.

The budget deficit fell suddenly in 2015 and at the end of August was three times less than it was in the same period last year and much lower than the target, but additional efforts will be required for good budget indicators.

The prognosis reads that the budget deficit will be 3.3 percent this year, 4.1 percent next year and 3.8 percent in 2017, and that gross public debt will increase from this year's 75.7 percent to 81.4 percent in 2017.

According to the EC, unemployment has decreased from 18.9 percent last year to 17.7 percent this year, and will remain at this level in 2016 and then fall further to 16.6 percent in 2017.