Economic Growth in Serbia Threatened by Unrest and Decline in Tourism

Serbia's economic growth is projected to decelerate to 2.1% in the first quarter due to a significant decline in tourism following anti-government protests. These protests erupted after a fatal accident in Novi Sad, resulting in corruption allegations. The World Bank adjusted Serbia's growth forecast amid global economic uncertainties.

Serbia's President, Aleksandar Vucic, announced a projected slowdown in economic growth to 2.1% for the first quarter, attributing the slump to a steep decline in tourism following anti-government protests. These demonstrations were sparked by the death of 16 individuals when a railway station roof collapsed, drawing concerns over corruption and negligence.

The protests expanded to include various societal groups, posing a significant challenge to Vucic's long-standing rule of 12 years. He noted the tourism sector's 22.8% downturn as a direct result of widespread blockades and actions perceived as destruction, both from within and outside Serbia. 'Achieving the planned 3.5%-3.6% growth for the year will be challenging,' he remarked.

The World Bank, in its Western Balkan report, revised Serbia's growth forecast from 4.2% to 3.5%, citing global trade uncertainties and an economic slowdown, especially in the euro zone. The Statistics Bureau's Q1 growth estimate is expected shortly, providing further insight into the nation's economic trajectory.

(With inputs from agencies.)