The Serbian economy has shown considerable resistance to the negative effects of the global crisis, and inflation has been on a downward trajectory since April, said the Governor of the National Bank of Serbia (NBS), Jorgovanka Tabaković, at a meeting with leading global investors during the Annual Session of the International Monetary Fund and the World Bank in Marrakesh, NBS announced today.
Tabaković pointed out that the lower growth of food and energy prices due to the easing of global cost pressures contributes to the fall in inflation, while they still affect about 60 percent of the total year-on-year inflation.
According to the central NBS projection, inflation is expected to return to the target range of 1.5 to 4.5 percent during the second quarter of 2024.
Tabaković said that the risks of the inflation projection still largely come from factors from the international environment, that is, the movement of world energy prices and the rate of inflation decline in the countries that are Serbia’s largest trading partners.
The NBS estimates that economic growth this year will be between two and three percent, and that exports will make the biggest contribution to growth.
According to the central bank’s forecast, fixed investments will also make a significant contribution due to the faster realization of infrastructure projects, the continuation of a strong inflow of foreign direct investments and the high profitability of the economy.
As stated, for years, Serbia has attracted more than 60 percent of foreign direct investments that arrive in the Western Balkans region, and in 2022 it had a record investment level of 4.4 billion euros, or 7.3 percent of the gross domestic product (GDP).
Next year’s GDP growth, NBS estimated, will be three to four percent, which will be contributed to by the acceleration of investments in transport, utility and energy infrastructure.
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