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Serb central bank cuts GDP forecast

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Serbia’s economy will grow less than expected this year because of the deteriorating economic outlook in the euro area, its key trading partner, and subdued domestic demand, the Belgrade-based central bank said. Gross domestic product will expand 2% in 2013, compared with an earlier 2.5% forecast, the National Bank of Serbia said in its quarterly inflation report Wednesday. The key contribution will come from agriculture and industrial production. The economy expanded an estimated 1.9% in the first quarter, led exclusively by car industry and crude oil product exports.

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