Tabakovic presents Serbia’s economic performance at international meeting

The NBS said that, at a meeting also attended by Mali, Tabakovic highlighted that Serbia recorded growth of 3.9 percent last year, with medium-term growth anticipated at 4–5 percent as the new investment cycle, supported by the “Leap into the Future – Serbia Expo 2027” program, will increase potential output.

She said that Inflation entered the target band of 3±1.5 percent in May last year, and that it is expected to remain within the target band by the end of this year and into the next.

According to Tabakovic, a relatively stable dinar exchange rate against the euro has been preserved, and the country’s record-high FX reserves, up by 120 percent from the pre-pandemic 2019, have been secured.

She also said that Serbia has boosted gold reserves, to c. 19 percent of its FX reserves.

The public debt share in GDP has been further reduced, supported by the medium-term fiscal framework and a relatively high level of government capital investment in the key construction and infrastructure projects in the country has been maintained, Tabakovic noted.

The governor said that the non-performing loan (NPL) share has been reduced to 2.2 percent.

“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-capitalized and liquid,” said Tabakovic, noting that this assessment by the IMF Executive Board is an additional confirmation that Serbia is pursuing sound economic policy.