In a recent interview with Radio and Television of Serbia (RTS), the Governor of the National Bank of Serbia, Jorgovanka Tabaković, addressed the potential economic effects of ongoing student protests, the impact of retail chain boycotts and the phenomenon of “chipflation” amid rising inflationary pressures.
Tabaković shared the NBS’s growth forecast for 2025, projecting real GDP growth at 4.5%, driven by the service sector, positive labor market trends, and increased wages. The manufacturing sector is expected to see growth, especially with automotive production and the completion of Block B3 of the Kostolac Thermal Power Plant, contributing to higher electricity output. The agricultural sector is expected to have a positive impact on economic activity, provided the year’s agricultural season is average.
While the protests are not yet factored into GDP projections, Tabaković acknowledged that they could lead to delays in investments and consumption. The slowdown in foreign direct investment observed this year could be temporary, with potential recovery later in 2025.
Regarding the boycott of retail chains, Tabaković emphasized that its impact would be short-term, as retail turnover on boycott days doesn’t provide enough data for broader conclusions. She highlighted the need for systemic solutions to address price growth, stressing the responsibility of all supply chain actors in setting prices rationally.
Tabaković also discussed “chipflation” — a term used to describe the phenomenon where the prices of cheaper products rise faster than more expensive ones during periods of heightened inflation. This was confirmed in Serbia, particularly within the processed food and beverage sector, and is thought to disproportionately affect lower-income populations. The phenomenon exacerbates inflationary pressures and heightens inflation expectations among the population.
