NBS projects inflation of 3% for 2018 – GDP to grow by 3.5%

Inflation in Serbia will remain low and stable, the governor of the National Bank of Serbia (NBS), Jorgovanka Tabakovic, says and adds that she expects the growth of the gross domestic product (GDP) to be at 3.5% this and next year.

At the presentation of the Inflation Report, she pointed out that the NBS would use all its instruments to ensure low and stable inflation in the medium term and that she believed that this, with the preservation of financial stability, is the best way for the central bank to contribute to sustainable economic growth and stronger resilience to external challenges.

For this year, the NBS projects inflation of 3% with the tolerance band of plus or minus 1.5%.

The governor said that, in the coming period, monetary policy decisions would continue to depend on their assessment of the impact of inflation factors from the domestic and international environment, but that key risks emanated from the international environment.

According to her, great success has also been achieved in reducing the share of non-performing loans in total loans to 9.2%, below the pre-crisis level.

She added that the NBS still estimated the GDP growth to be at 3.5% in 2018 and 2019 and at 4% in the medium-term.

The NBS expects the share of total fixed investment in the GDP to reach 22% this year.

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