Tabakovic: Prices to remain stable in 2017

BELGRADE - Serbia will see low inflation, a stable foreign exchange rate and a good inflow of foreign direct investment in 2017, says National Bank of Serbia (NBS) Governor Jorgovanka Tabakovic.

Such expectations are not only based on macroeconomic projections, but also on last year's achievements, she told Vecernje novosti in an interview.

"According to our projections, price increases in 2017 will be within the new, lower target band of 3 pct ±1.5 pct points. As regards the exchange rate, the NBS will, as in the past, strive to maintain relative stability in the domestic foreign exchange market at the least possible expense," she said.

The NBS's conservative estimate is that the inflow of foreign direct investment will be similar to 2015 and 2016 levels, which will be "more than sufficient to cover the current payment balance deficit," Tabakovic said.