BELGRADE, May 19 (Xinhua) -- Thanks to lower fiscal deficit and stronger external position, Serbia is more resilient to continuing uncertainty in the international environment, Jorgovanka Tabakovic, governor of the National Bank of Serbia, said Friday.
Presenting the quarterly inflation report, Tabakovic said that over the two-year horizon covered by the projection, "we expect inflation to move within the bounds of the target tolerance band of 3 percent" with a tolerance of 1.5 percent.
The report said GDP growth would step up to around 3 percent and then further up to 3.5 percent the following year, supported by continued favorable movements in the labor market.
Tabakovic estimated that uncertainty in the international financial market would continue, primarily because of diverging monetary policies pursued by the Federal Reserve Bank of the United States and the European Central Bank which will affect capital flows to emerging economies such as Serbia.
"Owing to reduced macroeconomic imbalances Serbia is now much more resilient to potential adverse impacts from the international environment," Tabakovic said.