Serbian economy contracted 4.0% y/y in 2Q09, the statistical office reported yesterday. The economy has now contracted for the second quarter in a row, meeting the expectations of economists. Activity in the manufacturing sector fell 20.0% y/y, while construction activity declined 16.1% y/y. GDP for the 1Q09 has been revised downwards from initially reported -3.5% y/y, to -4.2% y/y.