National Bank Governor: Serbia’s 2026 Inflation Circa 3.6 Percent, Economic Growth Three Percent

Jorgovanka Tabakovic (BETAPHOTO/MILAN ILIC)

National Bank of Serbia Governor Jorgovanka Tabakovic said on May 13 that the country’s inflation should, according to the Bank’s latest projections, continue toward the estimated 3±1.5 percent, averaging 3.6 percent this year, while the revised projections have decreased Serbia’s GDP growth from 3.5 to three percent.

During her presentation of the May inflation report, Tabakovic stated that the average domestic inflation should remain within the goal limits through the remainder of this quarter and the next, adding that the Bank revised its GDP growth estimate due to increasing geopolitical tensions caused by the war in the Middle East.

“Due to the effects of the extended global uncertainty on investment confidence, we adjusted the estimated economic growth in 2027 from five to 4.5 percent last year,” Tabakovic explained.

The governor stated that the significant surge in global oil prices and the cost of other products combined with the low base rates from September 2025 – achieved via the government’s temporary 20-percent markup cap – will lead to the inflation in late 2026 and early 2027 slightly surpassing the upper target limit.

“After that, inflation should slow down and drop back within the target limits, considering that we estimate it will be at the upper threshold in the second quarter of 2027,” Tabakovic concluded.