Page 49 - bne IntelliNews SE Outlook Regions 2024

The current economic landscape suggests a subdued growth rate for 2023, set to be reinvigorated in the next two years by lower inflation, which is expected to positively impact real disposable income, fostering private consumption.
“The impact of decreasing inflation on real disposable income is projected to foster private consumption growth towards the end of the year. Moreover, stronger net exports and investments will support moderate growth, albeit partially offset by lower inventories and lower government consumption,” the European Commission said in its Autumn Economic Forecast for Serbia.
While the economy is on a recovery trajectory, uncertainties and downside risks linger. International financial institutions (IFIs) point out that geopolitical tensions cast a shadow over the growth outlook. Additionally, the spectre of more persistent inflation could potentially dampen consumption and real growth. The IMF also notes energy sector developments, uncertainties related to the growth of trading partners and potential global financial market instability.
However, the Fund said that Serbia possesses significant buffers, including robust foreign exchange reserves, healthy public sector deposits, relatively low public debt, sustainable external debt dynamics, and a well-capitalised and liquid banking system.
49 SE Outlook 2024 www.intellinews.com