It is worth noting that so far the escalation of the Ukraine crisis and reduced external demand have not had a major negative impact on Serbian manufacturing output and exports owing to the constant rise in manufacturing capacity and in the related export supply.
A higher GDP growth outcome in Q2 relative to our May projection will most probably compensate for the expected economic deceleration in the remainder of the year amid deteriorated global economic outlook and mounting recession pressures in the euro area. Nevertheless, we estimate that quarterly GDP growth rates will remain positive for the rest of the year.