Bi-Weekly Report 17-30 September 2019

Strong supportive base effects more than offset the impact of weaker domestic demand, pushing up GDP growth to a 3-year high of 4.2% y-o-y in H1:19

Fitch upgraded Serbia’s long-term sovereign debt rating by 1 notch to “BB+” (1 notch below investment grade)

GDP growth moderated to a still robust 2.8% y-o-y in H1:19, due to less supportive base effects, once-off factors and external headwinds

GDP growth rose sharply to 4.6% y-o-y in H1:19, driven by gross capital formation

The Central Bank is likely to maintain its key rate unchanged at 2.25% throughout this year and next

Political tensions heighten following the instigation of impeachment proceedings against the President

The 4-quarter rolling current account deficit (CAD) widened temporarily to a 3-year high of 7.9% of GDP in Q2:19 from 6.7% in Q4:18, due to a higher energy deficit