The net FDI influx in Serbia in 2017 so far has grown by 12.6% relative to the same period last year, which is more than sufficient to cover the current account deficit which will stand at 4.6% of the GDP – says Ana Ivkovic from the National Bank of Serbia (NBS).
At the presentation of the November inflation report, Ivkovic said that current fiscal developments have surpassed the biggest of expectations, first and foremost because of the substantial growth of fiscal revenue.
Instead of the expected deficit, the Serbian budget has recorded a 2.6% surplus in the first nine months of this year. If we don’t count in the interest rate costs, than the surplus amounts to 5.8% of the national GDP.
The share of public debt of the central state in the GDP, which growth was reversed last year, continued to decline this year as well.
Ivkovic said that year-on-year inflation slowed as of May, and was 2.8 percent in October, as a result of lower year-on-year growth in energy and food prices, due to the base effect on oil derivatives and meat, as well as due to lower import inflation.
“Inflationary pressures remain low, and core inflation, which slowed to 1.4 percent in October, and anchored inflationary expectations, are within the NBS target,” she said.
Speaking mid-term, year-on-year inflation will continue to be within our target of 3.0 percent (± 1.5%) by the end of the projection period, i.e. in the next two years.
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