Expert predicts inflation under 10 pct

Economic expert Pavle Petrović said that the inflation rate will be under 10 percent at the end of 2008.

Izvor: Beta

Friday, 26.09.2008.

14:42

Default images

Economic expert Pavle Petrovic said that the inflation rate will be under 10 percent at the end of 2008. Petrovic, who is the editor-in-chief of Kvartal Monitor publication, said that the trend of rising inflation rates is expected to take a sharp turn downwards because of the decrease in the prices of agricultural products and oil. Expert predicts inflation under 10 pct “In the first half of the year, the inflation rate reached 13 percent, but there is a chance that it will go under 10 percent by the end of the year and to enter 2009 with a single-digit rate of about seven percent,” Petrovic said. He added that this and economic stability will depend on the future public spending trends and the relations between the rebalancing of the 2008 budget and the budget that will be adopted for the next year. Petrovic said that main “blow” to the budget this year will be the pensions hike, the investment in Zastava with Fiat, of some RSD 6bn. However, he said, revenues will increased too, so that the total added expenses of the rebalance of the budget could be in between RSD 20-25bn. The fiscal deficit would be at about two percent of the GDP, which this expert finds to be acceptable. Petrovic said that in the first half of 2008, there was a large deficit in the current balance, which reached 18.4 percent GDP. “Serbia is the record holder with that and only Bulgaria has had a similar deficit,” Petrovic said. He explained that such a deficit shows that there is not enough income from direct investments that would go into production for exports,. Petrovic said that decreasing public spending and adopting the budget with a small deficit would show that the economy in Serbia is stable, while a good report from the International Monetary Fund would enable it to attract foreign investors more easily, giving them a sign that the risk of doing business in here has diminished.

Expert predicts inflation under 10 pct

“In the first half of the year, the inflation rate reached 13 percent, but there is a chance that it will go under 10 percent by the end of the year and to enter 2009 with a single-digit rate of about seven percent,” Petrović said.

He added that this and economic stability will depend on the future public spending trends and the relations between the rebalancing of the 2008 budget and the budget that will be adopted for the next year.

Petrović said that main “blow” to the budget this year will be the pensions hike, the investment in Zastava with Fiat, of some RSD 6bn.

However, he said, revenues will increased too, so that the total added expenses of the rebalance of the budget could be in between RSD 20-25bn.

The fiscal deficit would be at about two percent of the GDP, which this expert finds to be acceptable.

Petrović said that in the first half of 2008, there was a large deficit in the current balance, which reached 18.4 percent GDP.

“Serbia is the record holder with that and only Bulgaria has had a similar deficit,” Petrović said.

He explained that such a deficit shows that there is not enough income from direct investments that would go into production for exports,.

Petrović said that decreasing public spending and adopting the budget with a small deficit would show that the economy in Serbia is stable, while a good report from the International Monetary Fund would enable it to attract foreign investors more easily, giving them a sign that the risk of doing business in here has diminished.

Komentari 0

0 Komentari

Možda vas zanima

Amerika ima poruku za Rusiju i Kinu 9
Svet

Amerika ima poruku za Rusiju i Kinu

Zvaničnik Stejt departmenta u Birou za kontrolu naoružanja Pol Din pozvao je danas Kinu i Rusiju da objave deklaraciju po uzoru na SAD u kojoj se obavezuju da će o korišćenju nuklearnog naoružanja uvek odlučivati ljudi, a ne veštačka inteligencija (AI).

8:01

2.5.2024.

1 d

Podeli: