The economic and fiscal situation in Serbia according to the SNB governor
“For seven years, inflation in Serbia has been 2%, and this is a success that has been achieved thanks to the so-called Serbia a step away from the investment rating program, ”said the Governor of the National Bank from Serbia, Jorgovanka Tabaković. .
“Serbia has borrowed abroad at an interest rate of 7.25%, and today it borrows at 1.6%. It is a measurable success. In the past, the interest rates on approved dinar loans were 18%, today they are 6.5% ”, said Tabaković and pointed out that the inflation in Serbia was 5%. , 7% last year. Inflation, she said, was on average 9% from 2008 to 2012, at the end of 2013 it was 2.2%, while from 2014 to 2020 it was 2%.
The predominant factor in this year’s inflation comes from abroad, namely that inflation is affected by the prices of energy, crude oil and natural gas, as well as the energy crisis and the prices of commodities traded, especially unprocessed foods, says Tabaković. . According to her, world prices for corn, soybeans and sunflowers have had an impact on Serbian prices.
The SNB governor adds that Serbia has already received € 3 billion in foreign direct investment this year and that 2019, the pre-pandemic year, was a record year with € 3.8 billion in investments.
“Our core inflation is still 2% and what drives the economy is confidence and inflation expectations. Serbia is one of the few countries that has not yet raised the benchmark interest rate, and we still do not have to do so in order to keep loan disbursements at the same level and not hamper the necessary growth. for the country, ”added the governor.
“In the first seven months, wages went up 8.5 percent. Our estimate is that by the end of the year average inflation will be 3.7%. The country’s GDP must grow more than wages and pensions while global inflation will affect our country ”, explains Jorgovanka Tabaković.
She adds that all agricultural, food and energy products have undoubtedly become more expensive and inflation is expected to return to 3% (+/- 1.5) by the middle of next year.
(Vecernje Novosti, 27.10.2021)
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