NBS Governor Jorgovanka Tabakovic stated today that Serbia’s exports reached the pre-crisis level, while in August the production of both the total and processing industries increased, which is why she expects Serbia’s economic growth of six percent next year.
Tabakovic, who is also the governor of Serbia in the IMF, attended today the plenary meeting of the International Monetary and Financial Committee (IMFC), as well as the meeting of the Swiss Constituency, the NBS announced.
“In Serbia, in August, the production of both the total and processing industry was at a level that is 3.1 percent and 1.3 percent above the pre-crisis level, and exports reached the pre-crisis level. Confidence is preserved, and next year we expect growth of about six percent, which means a complete recovery from the effects of the pandemic, to which state investments will significantly contribute,” Tabakovic said.
However, I do not consider our work finished, because it never ends, the governor said, adding that the central bank will continue to monitor all developments and react if it deems it necessary.
The meeting was held within the Annual Assembly of the International Monetary Fund and the World Bank, which, due to the current health situation, is being held in a virtual format.
It is estimated that the global economic outlook is improving, but also that there are differences between countries, ie that the recovery is partial and uneven. The conclusion is that everyone must work together to support the most vulnerable countries and that now is the time to build a more resilient future.
Also that policies must preserve trust, support jobs and encourage growth.
The meeting of the International Monetary and Financial Committee was attended by the highest officials who represent their countries in these international financial institutions.
At the meeting of the Swiss Constitution, Tabakovic informed the other member states of the Constitution that the Crisis Staff for Economy was established in Serbia immediately in March, headed by the President of Serbia, Aleksandar Vucic.
We continued to act in a coordinated manner – a huge package of measures was adopted in Serbia, the value of which is over 12 percent of the gross domestic product, said Tabakovic.
The speed of response and the scope of the package have proven to be key to preventing the spillover effects of the pandemic from spilling over into the labor market and production capacity.
The International Monetary Fund assessed that Serbia has adopted a strong, timely and comprehensive package of measures, which supported domestic demand and prevented the decline of business and consumer confidence at a time when global pessimism was most pronounced.
The NBS monitored all market participants, reduced the reference interest rate, provided liquidity for the required terms and in the required currencies, prescribed a moratorium on loan repayments and in other ways facilitated loan repayments and supported credit activity.
Serbia has maintained excellent access to the world financial market even in conditions when uncertainties were great.
And during this situation, it preserved full price, macroeconomic and financial stability.
These are all reasons why long-term investors continued to show confidence in Serbia and still high foreign direct investments, the NBS said in a statement, RTV reports.