The Serbian economy should reach the pre-crisis level of activity in the second quarter of this year, the National Bank of Serbia announced. Among the new news from this institution, it is pointed out that the reference interest rate will remain unchanged – one percent.
“Industrial production, retail trade and exports have already reached pre-crisis levels, and with further progress in the vaccination process, which has so far ranked Serbia among the best countries in the world, we expect activity in other service sectors to fully recover,” reads the statement of the National Bank.
The recovery of domestic demand in the coming period could be contributed by the continuation of the implementation of infrastructure projects, favorable financing conditions achieved by the previous easing of monetary policy, as well as the preserved labor market in the conditions of a pandemic.
Exports are expected to grow
The NBS Executive Board also announces that the inflow of capital to Serbia based on foreign direct investments of three billion euros in 2020 was the highest in the region and mainly focused on tradable sectors, which, along with the expected recovery in external demand, should contribute to double-digit export growth this year.
Representatives of this institution are announcing a slight increase in inflation for the next period, which could cause the price of electricity and oil products to rise.
However, there is no room for relaxation because great uncertainty comes from the environment. It mostly refers to the efficiency in the management of the pandemic, but also to the production and distribution of vaccines on a global level, BiF reports.
