Analysis 12 Jun 17

Drop in Electricity Production May Stifle Serbia's Economic Growth

The decline in electricity production in early 2017 will likely impact economic growth, according to experts who warn Serbian state energy company is in urgent need of reform.

Stevan Veljovic

Energy Minister Aleksandar Antic told Tanjug news agency on May 3, that EPS will invest 250 million euros in Kolubara to fund the maintenance of equipment and the opening of three new mines. Photo: Beta 

The government’s predicted economic growth rate of three per cent for 2017 has already been called into question, due to an unexpected drop in electricity production.

Electricity production dropped by 14.5 per cent in the first quarter of the year, with the sharpest decline in production – 22.9 per cent – recorded in March, according to the state Office of Statistics.

They recorded a meagre one per cent growth of the Serbian economy, expressed as GDP, in the first quarter of 2017. By comparison, throughout 2016 GDP never dipped below two per cent, which indicates this year’s growth rate might be lower than projected.

The production and distribution of energy is one of the key components of industrial production, along with agriculture, manufacturing, mining and other sectors, all contribute significantly to the country’s overall economic growth rate.

Subscribe to Balkan Insight Premium to read the full article.

Please login to your account below if you are already a Premium Subscriber.

Buy Premium Subscription

Our Premium Service gives you full access to all content published on, including analyses, investigations, comments, interviews and more. Choose your subscription today and get unparalleled in-depth coverage of the Western Balkans.

Buy Premium Subscription

If you have trouble logging in or any other questions regarding you account, please contact us

Talk about it!

blog comments powered by Disqus

Latest News from the Balkans

26 Jul 17

Tom Hardy Set to Star in Bosnia War Film

26 Jul 17

Croatia Broke EU Refugees Rules, ECJ Rules

26 Jul 17

Macedonian Police Crack Down on Street Racers

Premium Selection

26 Jul 17

Krunic: The Serbian Artist in Search of Conversation

Belgrade-born painter Slavko Krunic describes his portraits as ‘satiriconography’ but insists his caricature-style in no way mocks his subjects.

26 Jul 17

New Movement Pledges to Tackle Bosnia’s Old Problems

A new political movement is promising a fresher, younger approach to tackle the corruption and political self-interest that dominates the country’s politics – but many disillusioned voters remain sceptical.

24 Jul 17

The Many Charms of Serbia's Valjevo

24 Jul 17

The Srebrenica Refugee Camp that Never Closed

20 Jul 17

Serbia in Two Minds Over New IMF Deal