Serbia: Economic growth weakens in the third quarter
According to a flash estimate released by the Statistical Institute on 31 October, economic growth slowed in the third quarter following robust growth in the first half of the year. Nevertheless, the economy still expanded a solid 3.7% year-on-year (Q2: +4.8% year-on-year).
Economic growth was likely buoyed by strong domestic demand, with favorable financial conditions and rapid credit growth feeding through to strong private consumption and fixed investment spending. Moreover, rising wages also likely propped up household spending, while a surging construction sector should have supported infrastructure investment in the quarter.
On the external side, exports expanded at a solid pace throughout the quarter; however, import growth continued to outpace export growth and likely caused the external sector to drag on growth.
A full breakdown of the reading by components will be released on 30 November.