Monday , September 26 2022

NBS increased its GDP growth projection to 4.2%


Serbia has recorded the fastest growth in the past 10 years in the past 10 years, and it has accounted for 4.5 percent in the last three quarters, said Željko Jović at a press conference in the NBS, which presented the November inflation report.

Jovic recalled that all leading international financial institutions, including the International Monetary Fund, as well as the European Commission, raised forecasts of Serbia's economic growth.

According to him, this growth dynamics is expected to be maintained in the medium term.

Jovic pointed out that good results have been achieved, although the international environment is still characterized by a high degree of uncertainty, including volatility in the commodity market due to high oil and other primary products prices, as well as in the financial market due to the different dynamics of normalization of monetary policies of the Federal Reserve and the European Central Bank.

He also pointed out that year-on-year inflation ranged within the target, and that it stood at 2.2 percent in October, while core inflation in the past months was about 1.0 percent yoy, driven by low inflationary pressures.

According to the latest mid-term NBS projection, inflation will be within the target limit of 3.0 percent plus / minus 1.5 percent by the end of the projection period, ie in the next two years, Jovic said.

On its movement in the medium term, he added, will affect the growth of aggregate demand.

"In the forthcoming period, the disinflationary pressures on the basis of the appreciation of the dinar will gradually weaken in the previous period, in the short run, low costs in food production will act in the opposite direction, and the inflation sector within the target's target, both for the year and two years ahead, and the economy, "said Jovic.

Viceguvrener NBS said that the share of problem loans (NPLs) in total loans fell to 6.4 percent in September, the lowest since 2008, since this indicator of asset quality of banks is following.

"The strategy for solving problematic loans continues to yield excellent results. In just over three years since the adoption of this Strategy, the amount of problem loans has been reduced by more than 67 percent," Jovic said.

He pointed out that, thanks to this, as well as the high capital adequacy of banks and increased availability of funding for small and medium-sized enterprises, Serbia has made significant progress on the International Competitiveness Index of the World Economic Forum for 2018 within the indicators relating to the financial system.

According to him, in September, the annual growth of total domestic loans accelerated to 7.7 percent.

"This loan growth was realized with the continuation of activities to solve the issue of problem loans, which resulted in their significant write-offs and sales to persons outside the banking sector, which has further contributed to the increase in investments and acceleration of economic growth," Jovic said.

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