Inflation in Serbia will continue to move in the next two years within the target band of three percent ((±1.5 percent), the National Bank of Serbia (NBS) said on Wednesday.

At the presentation of the NBS Inflation Report, NBS Vice Governor Zeljko Jovic said that, under the new central projection, inflation should approach the target midpoint at end of 2025.

Such inflation movements, he said, will be underpinned by the still tight monetary conditions, subdued imported inflation and the anticipated lower global energy prices, as well as the new agricultural season, if it is successful.

Jovic noted that the central bank’s new projection is that the growth of the gross domestic product (GDP) would be 4.5 percent in 2025.

“Under our new projection, we expect GDP growth to pick up to 4.5 percent this year and range between 4 percent and 5 percent in 2026 and 2027, but probably closer to the upper bound of the range in 2027 due to the hosting of Expo 2027,” said Jovic.