NBS: Recovery of Serbian economy

Belgrade, May, 22.  2010 (Serbia Today)  National Bank of Serbia (NBS) estimated  that at the end of this year and early next year inflation will be about five percent, while the growth of gross domestic product (GDP) will be about 1.5 percent.  Vice governor of NBS Bojan Markovic said that inflation rate in April was 0.6 percent, while the prices from April 2009 to April 2010 increased by 4.3 percent.  In the second quarter there is expected further decline in inflation (about 4 percent) 
while the rest of the year will have the projected level of 6 plus / minus 2 percent. In 2011, inflation will be about 4.5 percent according to projections NBS. According to Markovic, this year it expects modest growth in GDP 1.5 percent due to slow release of the world economy from recession and low domestic demand. "We estimate that growth in investment and net exports will give the greatest contribution to GDP growth in the future. Public and personal consumption will continue to decline, "he said.  In the first quarter of 2010 for the first time since the beginning of the crisis Serbia recorded growth of GDP by 1 percent compared to the same period last year.  Net export growth for 13.9 percent while import is reduced to 4.8 percent. NBS has estimated that a significant recovery in economic activity could be expected in 2011, when it is projected to grow three percent of GDP.