NBS: With 3.8 pct growth, Serbian economy to be among Europe's top performers in 2024

BELGRADE - With a projected GDP growth of 3.8 pct, the Serbian economy will rank among the top performers in Europe in 2024, the National Bank of Serbia (NBS) said on Friday.

"We achieved a key strategic objective – investment-grade rating for Serbia," the central bank said in a statement recapping its work in 2024.

"- Inflation retreated within target bounds (3±1.5 pct) in May this year and has remained there.

- In 2024 as well, we preserved the relative stability of the dinar against the euro:

- the dinar gained 0.2 pct on the euro in nominal terms, and

- the NBS bought 2.5 bln euros net in the IFEM (ending with December 25).

- The year 2024 is the seventh of the past eight years (from 2017 onwards) in which the NBS was a net FX buyer – in the total amount of 11.6 bln euros (ending with December 25).

- Gross FX reserves are at their all-time high of 29 bln euros.

- We continued to raise the share of gold in FX reserves in 2024 – by a total of 8.1 t, to the record-high level of 48 t.

- As the price of gold in the global market went up, the value of gold reserves reached a new record high of 3.9 bln euros or around 13 pct of FX reserves.

- In 2024, dinar savings posted record-high nominal growth by over 49 bln dinars (35 pct), to over 187 bln euros.

- Interest rates on new dinar household loans decreased by over 200 basis points, and rates on new dinar corporate loans – by over 50 basis points (ending with November).

- We adopted measures under the NBS’s remit to support the implementation of the government youth housing loan programme.

- We decided to temporarily cap interest rates on loan contracts concluded with natural persons, as a reflection of our firm commitment to protecting the interests of financial service consumers; this matter will also be regulated by law.

- We not only returned inflation within target bounds, but also posted high GDP growth – among the highest in Europe. In cumulative terms, GDP growth will exceed the pre-pandemic level by over 18 pct.

- FDI inflows climbed to a new record-high of over 5 bln euros.

- The IMF approved to Serbia a three-year non-financial advisory Policy Coordination Instrument intended for countries pursuing sound economies policies," the NBS also said.