The National Bank of Serbia (NBS) forecasts annual inflation to fall to 3.7% in 2025, aligning with the Ministry of Finance's projection of 3.5%, NBS Governor Jorgovanka Tabakovic announced during a public hearing on the proposed state budget on November 24.

Inflation in Serbia has been rising steadily in recent months, with October’s year-on-year figure reaching 4.5%, placing the country among the top five in Europe for price growth. Turkey led the continent at 48.7%, followed by Romania at 5%, while Serbia and North Macedonia shared third place.

After briefly easing to 3.8% in June, inflation in Serbia has approached the upper limit of the National Bank’s target range of 3% ± 1.5%. However, the NBS forecasts inflation to fall closer within the target range in the coming months.  

"By the end of this year, [inflation] should move around the level of 4% or slightly above and then slow down, approaching the central value of the target at the end of next year," Tabakovic said.

Economic growth for 2025 is projected between 4% and 5%, with the central bank estimating a central value of 4.5%. Tabakovic credited investments planned under the government’s "Serbia 2027" programme as a significant driver of growth.

The government’s 2025 budget proposal, presented at the hearing, focuses on maintaining fiscal discipline while fostering continued economic growth. The budget assumes GDP growth of 4.2%, which aligns with the central bank’s optimistic projections.