The inflow of foreign direct investments reached 3.18 billion euros this year by the first decade of November, NBS Governor Jorgovanka Tabakovic stated today.
The governor stated that the Central Bank estimates that the value of FDI will amount to around 3.4 billion euros by the end of the year.
“We expect that the share of the current deficit in GDP this year will be around four percent, and in the medium term from four to five percent, with still full coverage of net inflows of foreign direct investment to 4 billion euros,” said Tabaković at the presentation of the November report on inflation.
She says that the inflow of FDI has so far exceeded the entire inflow of last year and that it already amounts to more than three billion euros since the beginning of the year, and that it is equally important that more than 60 percent of these investments are directed to tradable sectors.
This contributes to the growth of export capacities of the domestic economy and that is why, among other things, we are projecting double-digit growth in exports of goods and services in the coming years, the governor pointed out.
When it comes to the fiscal balance, she states that the projected deficit of 4.9 percent of GDP this year is more favorable than originally expected, as a result of faster economic growth and positive trends in the labor market.
“In the next year, we expect its further reduction to three percent, and in the medium term, the transition to a surplus, despite the fact that a significant amount of funds will continue to be directed to infrastructure projects. In this way, at a level below the Maastricht criteria. The Ministry of Finance estimates that at the end of this year, public debt will amount to about 58 percent of GDP,” Tabakovic said, B92 reports.
