WB: Steel plant sale could push GDP growth over 1.8 pct

The privatization of Zelezara Smederevo will have a positive effect on Serbia's GDP growth, World Bank Country Manager for Serbia Tony Verheijen has said.

Source: Tanjug
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(Tanjug, file)
(Tanjug, file)

If Serbia's sole steel mill increases its output, GDP could even exceed our forecast of 1.8 percent, he said.

"When we made estimates for this year we did not reckon that Zelezara will be privatized. Therefore, this sale could have an effect on GDP growth in the second half of the year," Verheijen told Tanjug during the recent spring meetings of the International Monetary Fund and the World Bank.

In the report we presented last week, we underlined that last year's growth was driven by bigger exports and better results of the private sector which is recovering faster than we hoped, Verheijen said.

If this privatization proves successful, it paves the way for greater exports - and a bigger growth, the WB manager said.

Business & Economy

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