IZIT: Production in freezing zone

BELGRADE - Industrial production in Serbia recorded a drop by 16 percent in September 2014 relative to the same month in the previous year, which means that it has got deep in the freezing zone, said economic analyst Sasa Djogovic of the Belgrade Institute for Market Research (IZIT).

Addressing a news conference, Djogovic noted that this was largely brought about by the drop of electricity production and production of steam and gas by 38.9 percent, which came as a negative consequence of the May floods.

At the same time, the production of petroleum derivates recorded a dramatic drop of as many as 91.5 percent, which could mean that though the repair of the capacities may have been completed, it remains to be seen what would happen in the month to come and whether some other factors are at play here, he noted.

Viewed cumulatively, the scope of production in Serbia in the first three quarters of the year recorded a drop by 5.7 percent relative to the same period last year, he said.

The weakening of the real sector shows that the May floods are not the only factor that contributed to the drop in production and that there are some structural problems in the economy, that sufficient new investments are lacking, as well as an economic initiative expansion, Djokovic said.

Poto screenshot Tanjug video