Serbian central bank publishes governor’s article for The Banker

Source: N1

The National Bank of Serbia (NBS) on Thursday published an opinion piece by Governor Jorgovanka that was featured in The Banker magazine on October 2.

 Tabakovic wrote that Serbia recorded economic growth of 5 percent in the first quarter of 2020 but saw that decline in the second quarter because of the coronavirus pandemic. “Despite the first phase of the coronavirus pandemic, which was mirrored in March’s data, high economic growth continued in the first quarter of 2020, when the Serbian economy recorded growth of 5.0%. As expected, due to the necessary containment measures introduced in all countries, economic activity declined in the second quarter, though the decrease was among the lowest in Europe. The drop in economic activity measured 6.5% year-on-year, meaning that the reduction was much lower than in the majority of European countries,“ Tabakovic wrote.  

She added that “the continuity of responsible policy and macroeconomic stability will be of crucial importance in mitigating the effects of Covid-19 and the global crisis on Serbia”.  

“The NBS expects most of the fall to be offset already by the third quarter, before a full economic recovery sets in by the year-end or in the first quarter of 2021 at the latest. Observed at the annual level, we expect Serbia’s real gross domestic product (GDP) to dip by only 1.5% this year, and to post growth of 6% next year. If Serbia achieves this result — and for the time being, the data is better than expected — there is a huge possibility that we will outperform all other European countries,” the governor wrote in the piece.

She said that savings have continue to rise in the country despite the global economic crisis and uncertainty caused by the coronavirus, “pointing unequivocally to citizens’ unwavering confidence in the stability and safety of the domestic financial system”.