Serbia's central bank cuts 2017 economic growth estimate to 2 pct

Shutterstock photo

BELGRADE, Nov 15 (Reuters) - The Serbian central bank lowered its economic growth forecast on Wednesday by a percentage point to 2 percent, but kept its forecast for 2018 and 2019 at 3.5 percent, in line with the revised estimates of the International Monetary Fund.

In its November inflation report, the bank said economic output had recovered from poor results of electricity producers in winter and a drought in summer, accelerating to 2.1 percent in the third quarter.

"With further acceleration towards the end of the year, GDP growth in 2017 will be around 2 percent," it said.

At the presentation, central bank governor Jorgovanka Tabakovic said the institution has revised upwards its projection for the net inflow of foreign direct investments for 2017, to 2.1 billion euros ($2.49 billion), up from previously expected 1.7 billion euros.

"The expectation is that this year foreign direct investments will be at the level of around 5.5 percent of GDP," exceeding the current account deficit which currently stands at 4.7 percent of economic output, she said.

Serbia plans to end 2017 with a balanced budget. To secure funding next year, the Balkan country was working on a benchmark-size dinar bond for 2018, worth around 110 billion dinars ($1.10 billion), Tabakovic said.

Serbia has a $1 billion five-year bond coming due in Dec 2018 which currently yields 5.875 percent.

($1 = 99.9600 Serbian dinars)

($1 = 0.8442 euros)

This article appears in: Stocks , World Markets , Economy , Banking and Loans

More from Reuters


See Reuters News

Research Brokers before you trade

Want to trade FX?