Tabakovic: Serbia to register 4-5 pct medium-term economic growth

WASHINGTON - National Bank of Serbia (NBS) Governor Jorgovanka Tabakovic, who is also Serbia's governor to the IMF, and First Deputy PM and Finance Minister Sinisa Mali represented Serbia at a Washington meeting of the Swiss Constituency, of which Serbia is a member, and Tabakovic noted that Serbia had registered 3.9 pct economic growth last year and was expected to see 4-5 pct growth over the medium term.

Tabakovic said a new investment cycle, supported by the Leap into the Future – Serbia Expo 2027 programme, would increase potential output.

"Inflation entered our target band of 3±1.5 pct in May last year, and we expect it to remain within the target band by the end of this year and into the next. We have preserved a relatively stable dinar exchange rate against the euro and have secured the country’s record-high FX reserves, up by 120 pct from the pre-pandemic 2019. We have boosted gold reserves, to c. 19 pct of our FX reserves. The public debt share in GDP has been further reduced, supported by the medium-term fiscal framework. A relatively high level of government capital investment in the key construction and infrastructure projects in the country has been maintained. We have reduced the NPL share to 2.2 pct," an NBS statement quoted her as saying.

"In the middle of the year, following the concluded Article IV Consultations, the IMF assessed that Serbia is well-positioned to manage potential shocks from the external and domestic environment – FX reserves and government deposits are high, public debt is declining, and banks are well-capitalised and liquid. Well-calibrated macroeconomic policies have delivered impressive results. This assessment by the IMF Executive Board is an additional confirmation that we are pursuing sound economic policy in Serbia. Amidst pronounced global uncertainty, the buffers we have built are an invaluable resource for the future," Tabakovic also said.