Zeljko Jović: Overview of recent monetary and macroeconomic trends in Serbia

Introductory speech by Dr Zeljko Jović, Vice-Governor of the National Bank of Serbia, at the presentation of the February Inflation Report, Belgrade, 19 February 2025.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Ladies and gentlemen, esteemed members of the press, dear colleagues,

Welcome to the presentation of the February Inflation Report.

Allow me, first, to briefly summarise the year behind us. Just as the previous post-pandemic years, last year was marked by global uncertainty, heightened geopolitical tensions and rising protectionism. And yet it was the year in which global inflation, which remains elevated, was reined in. On top of this, inflation was contained without triggering global recession, though growth remains below-average in a number of countries, including in the euro area – a region particularly important for us. Even in such highly complex conditions, our country continued to demonstrate a high degree of resilience, and we successfully achieved all our objectives.

• Most importantly, when it comes to monetary policy, in May 2024, we brought inflation back to the target tolerance band of 3±1.5%, consistent with expectations, while ensuring that it stays there in the remainder of the year.
• This helped us support economic growth more directly by cautious monetary easing, more favourable borrowing conditions and accelerated lending.
• A favourable growth outlook for our economy was an important feature of macroeconomic trends in 2024 – the growth measured 3.9% and was one of the highest in Europe. As we diversified growth sources and responded to challenges in an adequate and timely manner, GDP exceeded the prepandemic level by over 18%.