EBRD increases its growth projection for Serbia to 2.9% in 2017

Serbia’s central bank will keep its benchmark interest rate unchanged at 4 percent for the 10th consecutive month, over uncertainties from abroad and rising domestic inflation.

All 14 analysts and traders polled by Reuters this week and last said the central bank would keep the rate on hold. In April, the central bank said it kept the rate steady due to policies of key international central banks and their impact on emerging markets. Serbia’s annual inflation rate rose in March to 3.6 percent, from 3.2 percent a month earlier, inside the 2017 target of between 3 percent and 4.5 percent.

The Statistics Office is scheduled to announce April inflation data on April 12. “The central bank will likely hold the rate to safeguard the dinar exchange rate (versus euro) and also due to expectations of US Fed’s rate hike,” said Sasa Djogovic, an economist with the Belgrade-based Institute for Market Research. To stabilise dinar’s exchange rate, the central bank sold 345 million euros and purchased 30 million euros so far in 2017.

Also, the European Bank for Reconstruction and Development (EBRD) today reviewed the estimate of Serbia’s economic growth in 2017 up by 0.2 percentage points to 2.9%, from 2.7% in November.

In the latest report on the economic prospects of the region, published on the official EBRD site, this international financial institution projects that the growth of the gross domestic product of Serbia in 2018 will amount to 3%.

The economic growth in the EBRD region, which encompasses 36 countries, from East Europe to Morocco and Mongolia will accelerate from last year’s 1.8% to 2.4% in 2017 and to 2.8% in 2018, according to the projections of the London-based bank.

(NASDAQ, eKapija, 10.05.2017)

http://www.nasdaq.com/article/pollserbias-central-bank-to-keep-key-rate-unchanged-20170510-00336

http://www.ekapija.com/website/en/page/1753587/EBRD-reviews-estimate-of-2017-growth-of-Serbia-s-GDP-up-to-2-9

 

This post is also available in: Italiano

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