Serbia’s industrial production saw a positive shift, rising by 3.3 percent between January and October 2024. In October alone, year-on-year production growth reached 8.1 percent. Despite challenges posed by risks from key trade partners within the Eurozone, the country’s industrial sector continues to show signs of growth, as noted by MAT economists.
In addition to industrial growth, foreign trade exchange has also been on an upward trajectory for the fourth consecutive month. While exports remained steady, there was a noticeable slowdown in imports.
Experts pointed out that in response to weakened demand from the EU, Serbia found new opportunities in markets like China and Turkey. Without this shift, the country would have likely experienced a decline in goods exports during the first nine months of the year.
Regarding the national budget, Serbia recorded a deficit of approximately 40 billion dinars in the first ten months of the year. However, this figure is 14 billion dinars better than what had been anticipated after the budget rebalancing.
Inflation rates in Serbia showed an uptick in October 2024. In September and October, monthly inflation rose by 0.1 percent and 0.6 percent, respectively. Year-on-year inflation increased from 4.2 percent in September to 4.5 percent in October.
The year-on-year inflation decrease that began in April 2023 and briefly paused in April and August 2024 came to an end in October. For the first time in several months, year-on-year inflation was higher than the EU average. In comparison, the EU’s inflation rate was lower, with Serbia’s inflation at 4.6 percent in October, while the EU’s stood at 2.3 percent.
Of the 27 EU member states, Romania was the only country with a higher year-on-year inflation rate than Serbia, with its inflation rising from 4.8 percent in September to 5 percent in October 2024.
Overall, Serbia’s economic indicators suggest mixed results, with continued industrial growth and a manageable budget deficit, though inflation remains a concern when compared to regional trends.
