May 21 (SeeNews) - The Serbian central bank, NBS, expects the country's gross domestic product to grow by at least 6% in 2021, backed by the recovery of external demand, governor Jorgovanka Tabakovic said.
"The preserved favourable financing conditions, production capacities and jobs, including further advances in vaccination, are estimated to prop up the GDP growth rate to 6% and more and to ensure a return to dynamic growth rates in the years to come," Tabakovic said in remarks to the presentation of NBS May 2021 inflation report published on the bank's website on Thursday.
The continued investment will lead to a further rise in the share of goods and services exports in GDP, which should go up from last year’s 48% to over 56% by 2023, Tabakovic said.
"The NPL share in total loans is still below the pre-crisis level. It measured 3.9% in March. For instance, a year after the effects of the global financial crisis materialised in our country, the NPL ratio soared above 17%, reflecting the economic contraction and dinar’s weakening against the euro," Tabakovic added.
Last month, the International Monetary Fund (IMF) said Serbia's economy will grow by 5.0% this year, revising its forecast for a 5.5% rise in GDP. The IMF expects Serbia's GDP to expand by 4.5% in 2022, the Fund said in its latest World Economic Outlook report.