TABAKOVIC: GDP Drop to be Lower than Projected by IMF

Our projection for this year is that the drop of the gross domestic product will be lower than projected by the IMF, which is a great result given the circumstances. This is confirmed by them as well, by saying that the economy of Serbia will have a better result than the neighboring economies. The projection of the IMF for 2021 is not essentially different than ours and points to the same thing – next year, we will have a full recovery from the consequences of the pandemic and a continuation of the dynamic growth from the previous years, the governor of the National Bank of Serbia, Jorgovanka Tabakovic, says in her interview for Politika in response to the question whether she shares the IMF's optimism about the GDP dropping only by 3% this year and the projected growth in 2021.

When asked about the exact projections for the GDP for the current year, Tabakovic says that, in Serbia, after two years of growth at the average rate of 4.3%, the current year started out strong as well, and then the pandemic paralyzed the global economy. She added that the second quarter will be the most difficult one, primarily in tourism, hospitality and traffic.

– We then expect a full recovery thanks to the package of measures of monetary and fiscal policy, and a growth of at least 6% next year – Tabakovic says for Politika.

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