The economic recovery of Serbia is speeding up amid the revival of private demand and increase of total investment, while the economy will grow six percent in 2021 after which it will go back to four percent in the mid-term, according to the World Bank's latest Oct. 21 economic report for the Western Balkans.
The bank said that growth in Serbia had been impacted by a new financial incentives package, while the fiscal deficit in 2021 slowly declined. Good export results also helped the current account deficit remain below the projected rate.
Consumption will continue to be the motor for GDP growth in the mid-term while net exports will continue to negatively affect economic growth, the WB said. "To unleash its developmental potential and enable the creation of new, quality jobs, Serbia needs to remove structural bottlenecks linked to administration, the labor market, infrastructure and the tax system," WB Serbian office director Nikola Pontara has said.