In 2014, economic growth is expected to soften to around 1%. Nascent recovery of the euro area and the opening of Serbia’s EU accession negotiations should provide a key boost to investment and net export growth. Final consumption will continue to give a negative contribution to GDP growth due to fiscal consolidation. However, the implementation of fiscal consolidation measures and the announced structural reforms will open the scope for a faster GDP growth in the years to come. On the production side, operating on the assumption of an average agricultural season, we expect a fall in agricultural production, as well as slower growth of industrial production on account of the waning effects of the automobile industry, and a partial recovery of the construction industry.
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