Governor’s expectations: Inflation to go down and GDP to increase

Governor of the National Bank of Serbia (NBS) Jorgovanka Tabakovic has stated today that she expects inflation in Serbia to remain low and stable, and growth of gross domestic product (GDP) to be at 3.5 percent this and the following year.

At the presentation of inflation report she has pointed out that NBS contributes to sustainable economic growth in the best possible way, despite external challenges, using measures that preserve inflation within stipulated limits.

For this year NBS has estimated inflation of three percent, with deviation plus or minus 1.5 percent.

Governor has said that future decisions on monetary policy will depend on influence of domestic factors on inflation rate, yet key risks arise from the international environment.

According to her, great success has been achieved in reduction of stake of troublesome credits in overall loans, which is now at 9.2 percent, the same percentage it had prior to escalation of global economic crisis.

She has added that NBS will sick to forecast according to which GDP growth will be 3.5 percent this and the following year, and four percent in medium-term.

Expectations of NBS are that investments in Serbia will have a double-figure growth this year, amounting to 22 percent of GDP.

Izvor: Beta

Foto: Beta, Milan Obradović