Tabakovic: Inflation to Drop to 8% by End-Year

Inflation declined to 8.5% in October, moving somewhat below our August expectations over the past months, Jorgovanka Tabakovic, the governor of the National Bank of Serbia, said and added that the new projection was that it would drop to around 8% toward the end of the year.

– Under our new projection, after falling to around 8% late in the year, y-o-y inflation will most probably retreat within the target band towards mid-next year and continue to slow thereafter, approaching the target midpoint in late 2024 – Tabakovic said at the presentation of the November 2023 Inflation Report.

According to her, the GDP growth is also above what was expected.

– In Q3 GDP growth picked up to 3.5% y-o-y, exceeding our earlier expectations. In light of favorable developments, our GDP growth projection for the entire year is now around 2.5% – she said.

The fiscal deficit, she added, “will be lower than initially planned and will measure around 2.8% of GDP in 2023.”

Narodna banka Srbije Beograd

National Bank of Serbia

Jorgovanka Tabaković

inflation

growth of the gross domestic product

economic growth

fiscal deficit