The National Bank of Serbia (NBS) estimates that the real growth of the gross domestic product will be 6.5 percent this year, with the possibility of even more, as well as the real growth of 4.5 percent next year, as we expect in the medium term, said today NBS Vice Governor Ana Ivkovic.
Speaking at the Belgrade Economic Forum, Ivkovic said that the projections that inflation, after the influence of temporary factors last year and this year, which acted in different directions, should be at the level of the previous eight years from the middle of next year, which is her average since the beginning of the pandemic.
“When it comes to the impact of economic growth on inflation, we estimate that the faster growth of the gross domestic product we expect will not have an inflationary character, especially having in mind that better infrastructure increases the productivity of the economy,” said Ivkovic.
Also, he adds, better infrastructure stimulates private sector investments as well as the growth of production capacities, thanks to which, he says, the effect of demand on inflation should remain unchanged.
“In addition, better infrastructure reduces the operating costs of the economy, which has the potential to even reduce inflationary pressures,” Ivkovic concluded, Politika reports.
