Serbian economy improves despite weak GDP growth: statistics office

BELGRADE, Dec. 29 (Xinhua) -- The statistical office of Serbia (RZS) estimated on Friday that national GDP (gross domestic product) increased by 1.9 percent in 2017, and that there had been improvements in economic activity, employment and foreign trade.

Presenting the estimations for the economic activity for 2017, director of RZS Miladin Kovacevic said at a press conference the expected growth of 3 percent would be achieved if it wasn't for the drought this summer and lower production of electricity at the beginning of the year due to the cold winter.

However, Kovacevic stressed that GDP growth did not fully reflect the dynamism of the economy and highlighted the growth of export, industrial production and investments.

He explained that the level of inflation of 3 percent is a consequence of the prices of agricultural products and increased prices of electricity and oil.

"These weak results were compensated by the manufacturing industry that will achieve a growth of 7 percent," Kovacevic said, adding that industrial production continued its extensive growth and increased by 3.9 percent.

He said exports grew by 13 percent while imports increased by 14.2 percent, but that the deficit of the foreign trade would stay below 8 percent of the GDP.

Employment increased to 48.2 percent, decreasing unemployment to 12.9 percent. Salaries nominally increased by 4.1 percent, but the real increase was 1.1 percent, Kovacevic added. Enditem