The inflation in Serbia has been low and stable for the last six years, standing at some two percent, and is expected to remain at the same level this and next year, Serbia’s National Bank’s Vice Governor Zeljko Jovic has said on Wednesday, the Beta news agency reports.
According to him, a sustainable way was found to service the “inherited problematic credits”, and their level was reduced for over 70 percent in the last four years, while their participation in all loans was lessened to 5.2 percent.
“In 2019, favourable macroeconomic trends continue in Serbia; the inflation is low and stable, macroeconomic and financial stability preserved, financial costs remain low what increases the economic and investment activities, Jovic said, presenting the report on inflation.
He added that “interest rate for personal loans in national Dinar currency were twice and for companies three times lower than in 2013.”
Jovic said those interest rates contributed to the increase of investments, which substantially helped the economic growth.
“Positive fiscal trends and 0.7 surpluses in GDP the first half of the year are the results of successfully implemented fiscal consolidation and full coordination between the monetary and fiscal policies,” Jovic said.
He added those positive steps were made despite f unfavourable influence of outside factors like slowing down of the global economic growth due to additional protectionist measure and worsening geopolitical tensions.