INTERVIEW
We Were Ready For The Crisis JORGOVANKA TABAKOVIĆ Governor of the National Bank of Serbia
We will continue to use all monetary policy instruments in order to secure low and stable inflation in the medium term and to preserve financial stability, as this is the best way for us to contribute to sustainable economic growth and strengthen resilience to challenges coming from the domestic and international environment
T
he leading of responsible economic policy in previous years enabled us to instantly respond strongly, and in a timely manner, to current challenges, says National Bank of Serbia (NBS) Governor Jorgovanka Tabaković, explaining the fact that macroeconomic stability was maintained in Serbia during the crisis. “We entered the crisis in an extremely good position. Here I'm primarily referring to low and stable inflation, which we've maintained for seven years at an average level of around 2%, a healthy and resilient financial system, a balanced fiscal position, reduced external imbalances and a labour market characterised by rising employment and wage growth,” explains Tabaković. The adopted package of measures exceeding 12% of GDP minimised the economic harm caused by the COVID-19 pandemic, at the same time enabling Serbia to achieve a quick economic recovery and sustainable dynamic growth in the medium term, 18
says our interlocutor. “Furthermore, the package of measures didn't endanger the sustainability of public finances at any point. According to the assessments of international financial institutions, Serbia will this year achieve one of the best results in Europe when it comes to economic activity, and will be one of the few countries that will reach and surpass the pre-crisis level of economic activity next year, with a GDP growth rate of about 6%.” ► If we consider key indicators related to Serbia's external position, how does our country stand in relation to comparable countries? – Key indicators of Serbia's external position have improved significantly in recent years, thanks to economic policies that replaced the unsustainable growth model, driven mainly by personal and government spending, with a sustainable investment and export
FOREIGN INVESTORS COUNCIL 2020
