Tabakovic: Inflation Around 3.6% This Year, Economic Growth 3%

Inflation in Serbia, according to the projection of the National Bank of Serbia, is expected to continue moving within the target range of 3% plus or minus 1.5%, while the average inflation rate this year will amount to 3.6%, said NBS Governor Jorgovanka Tabakovic at the presentation of the May Inflation Report.

As stated in the NBS announcement, according to the revised projection, Serbia’s GDP growth for 2026 has been reduced from 3.5% to 3%.

The governor said that inflation during the remainder of the current quarter, as well as in the third quarter, will on average remain within the target range, while the NBS revised its economic growth forecast due to rising geopolitical tensions caused by the war in the Middle East.

“Due to the impact of prolonged global uncertainty on investment confidence, we have revised the projected economic growth for 2027 from 5% to 4.5%, starting from last year,” Tabakovic said.

According to her, the significant increase in global oil prices and other products, combined with the low base effect from September last year, resulting from the regulation that capped wholesale and retail trade margins at 20%, will cause inflation at the end of this year and the beginning of next year to temporarily move slightly above the upper limit of the target range.

“After that, inflation will slow down and return within the target range, given that already in the second quarter of 2027 we expect it on average at the upper limit of the target range,” Tabakovic stated.

Narodna banka Srbije Beograd

National Bank of Serbia

NBS

Inflation Report

Jorgovanka Tabakovic

inflation