New Economic Projections of NBS – Growth of Over 6.5% Possible in Serbia, Inflation Not to Drastically Affect Prices

Recently, the National Bank of Serbia has increased its projection of Serbia’s economic growth by half a percentage point, from 6% to 6.5%. In the regular quarterly report on inflation, it is also estimated that the price growth will remain within the targeted band, up to 4.5% a year, according to the latest report, presented to the public last year.

According to the central bank, thanks to the all-encompassing, well designed measures of fiscal and monetary policy, the pre-crisis GDP level, the August report by the NBS says, was reached in the first quarter already and will be transferred thanks to the second quarter and a growth of 13.4%.

Those results, provided there’s not a strong Covid wave and that there is a greater inflow of foreign direct investments and bigger state investments in the infrastructure, could make the GDP growth even bigger than 6.5%, estimates the General Manager of the Economic Research and Statistics Department at the NBS, Savo Jakovljevic.

– According to our assessment, fixed investment will increase by around 17% this year, contributing 3.8 pp to GDP growth – Jakovljevic said.

The governor of the NBS estimates that, in the next period, the inflation will not move out of the targeted band of 1.5 and 4.5%.

Narodna banka Srbije Beograd

NBS

Savo Jakovljević

road infrastructure

utility infrastructure

railway infrastructure

service activities

prices

inflation

coronavirus

pandemic