Professor Savic: Inflation is taking hold, Serbia is not an isolated island

Gross domestic product (GDP) has been declining for the past year, and according to professor of the Faculty of Economics of the University of Belgrade, Ljubodrag Savic, this situation will continue due to domestic problems, but also due to problems the world is facing.

„Considering what is happening in a much more developed part of the world than Serbia, I am not optimistic that we will be able to maintain this level,“ Savic told Bloomberg Adria TV.

He added that we should also be satisfied with growth of 1% to 2% on an annual level and that many countries in the world, especially developed ones, would be satisfied if the growth was only positive.

Commenting on inflation, he said it was difficult to expect it to settle soon or start dropping.

„Although the National Bank (NBS) expects inflation to subside in the third quarter, this is not realistic to expect. Inflation is taking hold in the world – all our biggest trading partners are recording, for their circumstances, incredibly high inflation rates. It is difficult to expect Serbia to be an isolated island,“ Savic said.

“Whether this growth will be sustained depends more on the EU and China. In agriculture, we suffered great damage. All in all, it is least up to us,“ he said.

As a reminder, the Statistical Office of the Republic of Serbia announced that GDP in the second quarter of this year increased by 3.9 percent in real terms compared to the same period of the previous year. In the second quarter, GDP grew by 1.2% compared to the previous quarter.

Izvor: Bloomberg Adria

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