After stepping up to 4.8% y-o-y in Q3, GDP growth accelerated still further in Q4 (to 6.1%), exerting the largest impact on the growth of the Western Balkans region, as stated by the European Commission in its report.
While many scaled down the growth forecasts of their economies, Serbia outperformed all the projections owing to the impact of domestic factors, notably higher than projected investment. In the past two years alone, fixed investment increased cumulatively by close to 35%, accounting for three quarters of Serbia’s economic growth. The NPL ratio was cut to 4.1% at end-December!