NBS representatives at the meeting of the Subcommittee for Economic and Financial Issues

NBS representatives took part in the meeting with EU representatives within the Subcommittee for Economic and Financial Issues. In addition to other topics, they focused particularly on Serbia’s macroeconomic developments and prospects.

At the start of the meeting, EU representatives reminded that, among others, Chapter 9 – Financial services and Chapter 17 – Economic and monetary policy, have been opened, these being the two negotiation chapters where the NBS is the lead institution.

NBS representatives reiterated the growth factors, which in mid-October they presented during the talks with the European Commission, as well as the GDP growth projection for this year which has been revised up to -1%, reflecting a better than expected outcome in Q3 this year and upside risks. They highlighted that inflation has been preserved at a low level, and is expected to remain stable in the medium run, and presented the factors underlying such inflation path. NBS representatives also pointed out the accelerated recovery of Serbia’s exports, which touched the pre-pandemic level already in August, noting however that their performance will be influenced by the pace of recovery of our European trade partners.

The banking sector faced the crisis with ample liquidity reserves, and features high stability and resilience according to internationally comparable indicators. Owing to the NBS pro-active approach, the NPL ratio was cut to the record low of 3.5%. As so far, the NBS will continue to keep a close eye on developments in the financial sector.

Governor’s Office