Serb cbank cuts 2012 GDP forecast to -1.5 pct from -0.5 pct

BELGRADE, Oct 10 (Reuters) - The Serbian economy will contract by 1.5 percent in 2012 before bouncing back with growth of around 3 percent in 2013, central bank vice governor Veselin Pjescic said on Wednesday.

"We have revised the GDP projection for 2012 from minus 0.5 to minus 1.5 percent ... the bigger drop ...will be mainly driven by a very poor agricultural season and long and intensive drought," he told a news conference.

"In 2013 we expect a GDP increase of three percent that will be driven by net exports and investments to a lesser extent."

(Reporting by Aleksandar Vasovic; Editing by John Stonestreet)