November 30 (SeeNews) - Erste Group said on Tuesday it expects Serbia's gross domestic product (GDP) to increase by 7% in 2021, before growth moderates to 4.5% next year.
"3Q21 figure confirmed decent growth momentum in Serbia, hence we keep our FY21 GDP forecast at 7% y/y. Structure-wise, we expect a similar pattern going forward, with domestic demand, notably private consumption, firmly behind the wheel," Erste said in an instant comment after Serbia's statistical office published GDP data for the third quarter earlier in the day.
Private consumption in 2022 will be supported by the announced 9.4% minimum wage hike, an increase in public sector wages of between 7% and 8%, a 5.5% pension raise, Erste said.
"Next year's growth is seen moderating to 4.5% y/y," Erste said.
Serbia's gross domestic product (GDP) grew by a real 7.7% year-on-year in the third quarter of 2021, after rising by 13.7% in the previous quarter, the country's statistical office said on Tuesday.
On a quarterly comparison basis, Serbia's economy rose by 1.6% in the third quarter of 2021, after growing 1.3% in April-June, the statistical office said in a statement.
The third quarter of 2021 saw a significant rise of gross value added in real terms in transportation and storage and accommodation and food service activities, of 17.0%, construction, of 15.8%, and professional, scientific and technical activities and administrative and support service activities, of 13.7%.
The gross value added in the sector of agriculture, forestry and fishing decreased by 4.8%.
Among the GDP components, household final consumption expenditure rose by 8.2% and gross fixed capital formation went up 12.6%.