Industry in Serbia, May 2022

Industrial production growth jumped to 8.7% year on year in May from 2.0% in April. This happened against the background of the rapid growth of production in the mining and manufacturing industries. On the other hand, the production of electricity, gas, steam and air conditioning has declined markedly. Meanwhile, average annual industrial production growth slowed to 2.8% in May from 2.9% in April.

Finally, industrial production fell 2.0% m/m in May, compared with a 2.1% contraction in April.

Mate Djelic, an analyst at Erste Bank, commented:

“Industrial production in Serbia has exceeded our expectations […]. A strong growth carryover was evident in 1Q22, but growth may weaken now. Looking ahead, we expect supply chain disruptions and high production costs to weigh on overall production, with public investment support limited due to shrinking fiscal space.”

FocusEconomics Consensus Forecast experts expect industrial production to grow by 2.6% in 2022, up 0.1 percentage point from last month’s estimate. In 2023, industrial production will grow by 3.5%.