In difficult conditions in which developed economies have been standing on the brink of recession for quite a while and after two consecutive droughts that affected the Serbian agriculture and food industry, we have managed to preserve economic growth – slower than we would all like, but with the growth rates still positive. Also, employment in Serbia continues to grow.
We did not respond to inflation by raising interest rates aggressively, but have done so gradually, with a view to anchoring inflation expectations. Consistent with our expectations, inflation entered a decline from Q2. We expect it to recede to around 14% by the end of June and to go further down to around 8% by the end of the year.