Nikolic: 2023 inflation likely to remain in double figures

BELGRADE - In 2023, Serbian inflation is expected to remain in double figures and may be expected to fall below 10 pct only at the end of the year, says Radojka Nikolic, editor of the Biznis and Ekonometar economic magazines.

"Once we look at the entire year, we will definitely have double-figure inflation on average, while a return to more normal inflation trends with 4-5 pct inflation is expected to happen only at the end of 2024 or in 2025," Nikolic told Tanjug.

She said this would lead to a decline of purchasing power and living standards.

She said the current rise of euribor would definitely make loans more expensive.

On the other hand, the National Bank of Serbia key policy rate has been on a rise, he said.

"Like all other banks, our bank, too, increases the rate by 0.5 pct from time to time. Currently it is at 5 pct and it is definitely expected to go as high as 6 pct or perhaps even higher, depending on the situation," Nikolic said.

She said the entire world was in a very difficult situation and recalled that the IMF had said a third of the world's economies, including half of the EU economies, would be hit by recession in 2023.

"That means there will be no economic growth, and when there is no economic growth, the economic situation is difficult for all," Nikolic concluded.