Tabakovic: Inflation by end-year above NBS projection, GDP to have lower growth

The inflation in Serbia in the next months will be above the projection of the National Bank of Serbia (NBS), and the growth of the gross domestic product will be lower than expected, stated the governor of the NBS, Jorgovanka Tabakovic, at the presentation of the monthly inflation report. She said that the y-o-y inflation in July amounted to 4.9%, above the NBS’s goal of having it at 3%, with a deviation of plus or minus 1.5%.

As she said, the higher growth of the inflation is for the most part a consequence of the increase in the prices of fruit, which were 36% higher in July compared to the previous month.

Adverse weather conditions, the frost in the spring and the drought in June, according to the governor, have contributed to fruit production being lower, and the prices considerably higher, so the NBS, together with the institutions in charge, is taking measures toward solving the problem of negative effects of the climate factors on the supply and prices of food, primarily by using insurance under more favorable conditions.

– Due to the blockades in Serbia, investor and consumer trust is lowered, so the new NBS projection is that the growth of Serbia’s GDP this year will amount to 2.75% instead of the previously projected 3.5%, and in the next two years, between four and five percent – she said.

Narodna banka Srbije Beograd

National Bank of Serbia

NBS

Jorgovanka Tabaković

inflation in Serbia

gross domestic product