The NBS Head Office Building was built from 1888 – 1890, on the basis of blueprints designed by Konstantin Jovanovic (Vienna 1849 – Zurich 1923), son to distinguished artist Anastas Jovanovic...
31/12/2024
According to the SORS flash estimate of macroeconomic trends in 2024, Serbia has demonstrated resilience to various challenges this year as well, preserving macroeconomic and financial stability. By end-2024, GDP increased by over 18% compared to the pre-pandemic level.
Serbia recorded real GDP growth of 3.9% in 2024, reflecting upturns in the industry, construction and services sectors. The physical volume of industrial production grew by 3.0%, with manufacturing posting 4.4% growth despite the overhaul of the NIS Refinery in Pančevo and weak external demand, particularly from the euro area. Mining production increased by 7.5%, while the energy sector posted a 6.0% decline, driven by reduced hydropower potential due to the drought. The value of construction works performed rose by 8.6%, consistent with real growth in total fixed investment of 9.2%. The service sector growth is also evident, as indicated by a 5.9% real increase in trade turnover. Hospitality turnover expanded by 8.3%, transportation activity by 9.3%, while tourist overnight stays were 1.4% higher than the previous year. In contrast, agricultural output declined by 8.8%, due to a severe drought.
Labour market developments in 2024 were favourable, with continued employment growth, declining unemployment, and real growth in wages and the living standards. Average nominal wage rose by 14.2%, with a real increase of 9.2%, preserving the purchasing power of the population. According to the Labour Force Survey, the unemployment rate fell to 8.1% in Q3, while the employment rate reached 51.9%.
Average annual inflation in 2024 stood at 4.6%, while December y-o-y inflation was 4.3% – within the NBS target band of 3±1.5%. Inflation continued to decelerate this year as well, primarily due to lower energy prices and a slowdown in food price growth. Other contributing factors included the effects of monetary policy measures, lower imported inflation and reduced inflation expectations.
When it comes to external trade trends, SORS estimates indicate that goods exports have grown by 1.7% in 2024, despite reduced external demand. This primarily reflects the resilience of exports, owing to their sectoral and geographic diversification. On the other hand, flash estimates suggest that goods imports have risen by 5.6% at the year-level, driven by the continuation of the investment cycle, higher imports of equipment and intermediate goods, as well as increased imports of consumer goods resulting from a higher disposable income of the population.
Governor’s Office
