Latest news with #NationalBankofSerbia
The Star
6 days ago
- Business
- The Star
Serbia cuts 2025 GDP forecast to 2.75 pct on weaker agriculture, uncertainty
BELGRADE, Aug. 13 (Xinhua) -- Serbia's central bank has lowered its 2025 GDP growth forecast to 2.75 percent from previous projection of 3.5 percent in May, citing a poor agricultural season and reduced investor confidence. National Bank of Serbia (NBS) Governor Jorgovanka Tabakovic said second-quarter growth was weaker than expected, with early data showing lower wheat and fruit output and smaller sown areas for autumn crops. "Unfavourable weather conditions, first frost in spring and then extreme heat and drought in June, significantly reduced yields of many fruit crops, whose prices recorded a sharp increase," Tabakovic said at the presentation of the August Inflation Report on Wednesday. The NBS expects activity to accelerate in the second half of the year, supported by further growth in the automotive industry, higher exports, and infrastructure projects under the "Leap into the Future - Serbia Expo 2027" program. Announced by President Aleksandar Vucic in January 2024, the program involves an investment of 17.8 billion euros (about 20.8 billion U.S. dollars) over the next three and a half to four years for projects across the country, including preparations for Expo 2027. The NBS also projected growth of 4-5 percent in 2026 and 2027, with the upper range likely in 2027 due to the Expo's boost to services and net exports. Inflation rose to 4.9 percent in July from 4.6 percent in June, driven by higher unprocessed food and oil prices. The bank expects it to stay near the upper bound of its target range through year-end before easing in 2026. Economic growth in the second quarter stood at 2.0 percent year-on-year, supported by services and manufacturing but offset by declines in construction and energy. In the first half of the year, exports rose 10.8 percent year-on-year, led by automotive-related manufacturing, while imports grew 11.4 percent on higher purchases of raw materials and consumer goods. The current account deficit reached 4.7 percent of GDP, with foreign direct investment inflows of 1.5 billion euros, down 40 percent from the same period last year but expected to strengthen in the second half.
Bloomberg
10-07-2025
- Business
- Bloomberg
Serbia Holds Rates Again as Price Risks Prevail Over Growth
Serbia left borrowing costs unchanged for a 10th month, keeping a cautious stance even after inflation inched toward the Balkan nation's target and economic expansion slowed amid global trade risks and political protests at home. The National Bank of Serbia held the one-week repurchase rate at 5.75% on Thursday. The decision matched the forecasts of eight out of 17 economists in a Bloomberg survey, while a slim majority expected a quarter-point cut.
Bloomberg
12-06-2025
- Business
- Bloomberg
Serbia Unexpectedly Holds Rates as Caution Trumps Slowing Growth
Serbia 's central bank unexpectedly kept borrowing costs unchanged for a ninth month, sticking to a cautious policy approach even as inflation eases and economic growth slows. The National Bank of Serbia held the one-week repurchase rate at 5.75% on Thursday. The decision matched the forecasts of seven out of 18 economists in a Bloomberg survey, while the others expected a quarter-point cut.
Bloomberg
12-06-2025
- Business
- Bloomberg
Serbia Seen Resuming Rate Cuts After Long Pause: Decision Guide
Serbia is poised to cut borrowing costs for the first time since September as inflation approaches the central bank's target and economic growth slows. The National Bank of Serbia is likely to reduce its one-week repurchase rate by 25 basis points to 5.5%, according to 11 of 18 economists in a Bloomberg survey. The rest expect policymakers to keep the benchmark on hold, even after the European Central Bank, which Serbia monitors closely for direction, continued to reduce rates last week.
Bloomberg
09-05-2025
- Business
- Bloomberg
Serbia Holds Rates With Inflation Risks Eclipsing Slower Growth
Serbia kept borrowing costs unchanged for an eighth month as concern over inflation and rising global trade tensions prevailed over a sharp slowdown in economic growth amid months of public protests. The National Bank of Serbia kept its one-week repurchase rate at 5.75% on Friday, as predicted by most analysts in a survey. Only three out of 17 economists expected a quarter-point cut. Inflation has hovered around the upper end of the central bank's tolerance range since July and was at a 4.4% annual rate in March.
