Serbia: Economy accelerates in Q1
May 31, 2016
In the first quarter of this year, the economy expanded 3.5% over the same quarter last year, according to data released by the Statistical Office of the Republic of Serbia (SORS) on 31 May. The print marked an acceleration over the 1.2% increase seen in the fourth quarter of last year.
Private consumption in Q1 expanded 0.7% in annual terms, which contrasted the 0.3% decrease seen in the fourth quarter. Moreover, growth in government consumption accelerated from 0.8% in Q4 to 3.2% in Q1, thus hitting the highest reading since Q2 2012. In addition, fixed investment improved and grew 8.0% in Q1, which was up from the 7.8% increase seen in Q4.
On the external side of the economy, exports of goods and services accelerated notably and expanded 11.5% in the first quarter, thus accelerating over the 5.5% increase tallied in the fourth quarter. On the other hand, imports decelerated to a 4.7% increase, which was down from the 5.1% rise observed in Q4. As a result, the net contribution from the external sector improved from minus 0.5 percentage points in the fourth quarter to plus 2.5 percentage points in the first quarter.
Compared to the previous period, GDP increased 1.6%, which contrasted the 0.6% decrease tallied in Q4 and marked the best result in three quarters.
Author: Dirina Mançellari, Senior Economist