TABAKOVIC: Low inflation and stable exchange rate continue

(Jorgovanka Tabakovic) Governor of the National Bank of Serbia Jorgovanka Tabakovic stated on Wednesday, August 17, that the inflation in Serbia in the past four years of her official duty had been low and stable, which had not been the case in the preceding period, and that the trend would continue in the period to come.

– We will remain committed to preserving low and stable inflation and a sound financial system in
the coming period, as this is the best way for a central bank to support economic recovery and
further strengthening of domestic macroeconomic fundamentals – Tabakovic said at the presentation of the Inflation Report.

She pointed out that the macroeconomic outlook for Serbia was even more favorable than it had been in May and that the estimates were that the economic growth would amount to 2.5% in 2016 and 3% in 2017.

– We expect economic growth to accelerate to 2.5% this and 3% next year, and a further reduction in the current account deficit from 4.8% in 2015 to 4.2% this year, as well as that it will be fully covered by the inflow of foreign direct investments – Tabakovic said.

She pointed to the fact that, thanks to a sound monetary policy and a growth in foreign exchange reserves, the NBS was prepared to maintain the stability of the exchange rate and to respond to external shocks.

– Low inflation and a relatively stable exchange rate have proven to be the cornerstone of the overall financial stability and business predictability – Tabakovic emphasized and added that there was full coordination between monetary and fiscal policy measures.