The European Bank for Reconstruction and Development (EBRD) has cut the anticipated 2012 economic growth rate for Serbia by almost a half, thus reducing it to 1.1 per cent, EBRD posted on its website on Tuesday.

For purposes of comparison, the anticipated growth rate totalled 2.1 per cent in October 2011, and it is now one per cent lower.

In the release, EBRD noted that the Serbian economy has stabilised but that its growth remains slow. According to estimates, Serbia's GDP in 2011 increased by around two per cent, but this year's growth would be lower, while the inflation rate dropped to seven per cent by the end of 2011.

EBRD assessed that the election consumption could encourage economic growth in the short-run, but the major risks for the economy are still present and they mostly come from exposure to debt crisis in the Eurozone. The continuation of support provided by the International Monetary Fund ensures strong protection for Serbia, as is the case with other countries as well, EBRD stated.

Apart from this point, EBRD lowered the 2012 economic growth forecast for other former Yugoslav republics, thus reducing the anticipated growth rate for Croatia from 1.9 per cent to one per cent and from 2.4 per cent to 1.8 per cent for Macedonia, the rate for Montenegro was lowered from 2.6 per cent to 1.9 per cent, while the growth rate for Bosnia-Herzegovina was lowered from 2.3 per cent to 0.5 per cent.

In the case of Slovenia, as the only former Yugoslav republic that holds EU membership, EBRD predicts a negative economic growth of minus 1.1 per cent, in contrast to the October assessments according to which the growth was supposed to total plus 0.5 per cent.