National Bank of Serbia (NBS) Governor Dejan Šoškić stated Tuesday that the current level of prices in Serbia was stable and that inflation was going down.
He added that the first half of 2012 was expected to see the inflation rate within the projected framework of 4.5 plus or minus 1.5 percent.
The governor stated at the 11th Economic Summit of the Republic of Serbia dubbed “Serbia-European Union: Prospects & Challenges – The impact of the Global Crisis on the Serbian Economy” that the inflation by the end of the year was expected to be single digit, recalling that August had a zero inflation, while at the annual level it amounted to 10.5 percent.
Šoškić stressed that the GDP growth rate in 2011 would reach 2.5 percent, adding that Serbia’s biggest problem was unemployment, and that it could be resolved only through increase of economic activity which would lead to GDP growth.
He said that the dinar was stable with minor oscillations since May 2010, adding that the NBS interventions in the foreign exchange market were moderate compared to the previous years.
“Moreover, the foreign currency reserves are also stable,” the NBS governor pointed out, adding that they amounted over EUR 11bn which was above the standard.
However, the governor warned that the level of the public debt was the highest we could handle as it currently amounts to 45 percent of the GDP.
According to him, the foreign Greenfield investments are not at the satisfactory level and more of them should be attracted.
Šoškić also commented the precautionary arrangement with the International Monetary Fund (IMF) amounting to EUR 1.1bn, stressing that these funds would be of great importance in case the situation aggravates.
Today will mark the end of 11th Economic Summit of the Republic of Serbia, which addresses political, economic and business development of Serbia and its role in the region.
Source:b92
