**Serbia’s Economy Thrives: Governor Highlights Strong Growth and Stability**
Serbia’s economy has been performing exceptionally well, with a GDP growth rate of 3.9 percent in 2024, making it one of the top-growing economies in Europe. According to National Bank of Serbia (NBS) Governor Jorgovanka Tabakovic, this achievement is even more impressive when compared to pre-pandemic levels, where the current figure is a whopping 18 percent higher.
At a recent meeting with the Swiss Constituency in Washington DC, Governor Tabakovic emphasized that inflation has returned within its target range of 3±1.5 percent and is expected to be near the midpoint by year’s end. This stability is a testament to the country’s economic prowess. The dinar, Serbia’s currency, has maintained relative stability against the euro, while foreign exchange reserves have reached record highs, more than doubling their pre-pandemic level in 2019.
**Gold Reserves Soar and NPLs Decline**
Governor Tabakovic also highlighted the country’s impressive gold reserve growth, which now accounts for around 15 percent of Serbia’s total foreign exchange reserves. This significant increase demonstrates the government’s commitment to diversifying its assets. Furthermore, non-performing loans (NPLs) have been brought down to below 2.5 percent, a record low.
**Foreign Direct Investment Reaches New Heights**
Serbia also had a remarkable year in terms of Foreign Direct Investment (FDI), with an influx of EUR 5.2 billion – the highest in Western Balkan countries. This surge is a vote of confidence from foreign investors in Serbia’s economic policies and growth prospects.
**Strong Projections and Confidence in Economic Policy**
The latest review by Standard & Poor’s, published in early April, reinforces Serbia’s strong GDP growth prospects over the medium term. The report highlights the country’s built buffers as a robust safeguard against potential economic shocks. In light of deteriorating global growth projections, this assessment is particularly reassuring. Governor Tabakovic views this endorsement as a reflection of confidence in Serbia’s economic policy, which has enabled the country to maintain high growth rates despite challenging global conditions.
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