Q:
A:
Inflation in 2007 8.5 %
Belgrade,
26 September 2007
Serbian Minister of Finance Mirko Cvetkovic said today that GDP will grow 7% by the end of the year, while inflation in 2007 will be between 8% and 8.5% if the current trend, which exceeds the planned 6.5%, continues.
Mirko Cvetkovic
Author:
Fonet
Speaking at the 4th Raiffeisen economic conference themed "Creative Banking", Cvetkovic said it can be expected that the price of food continues to grow in September as a consequence of this summer’s drought. This will have a negative effect, therefore inflation this month could reach 1%.
He warned that the state will face reduced agricultural production, which will result in a lower growth of GDP, but explained that Serbia will remain in the zone of very high growth rates nonetheless.
If forecasts of the Ministry of Finance come true, GDP per capita in Serbia will reach €4,500 per year, Cvetkovic said.
Speaking about the 2008 budget which is being prepared, he announced that the Ministry of Finance will strive to reduce public expenditure and the participation of budget in GDP for around 1%.
According to current calculations, if the government holds the increase in salaries at the level from December 2006, there will be an increase in the 2008 budget of 14%, explained Cvetkovic.
Minister Cvetkovic also said that the Serbian budget, which this year stood at 24.7% of GDP, will go down by 1% next year, that is, it will put less strain on GDP than in 2007.
Cvetkovic recalled that preparations for the adoption of the law on the 2008 budget have begun. He also said that current fiscal instruments ensure the collection of budgetary income of RSD 630 billion, which will, more or less, be the framework for the next year’s budget.
He warned that the state will face reduced agricultural production, which will result in a lower growth of GDP, but explained that Serbia will remain in the zone of very high growth rates nonetheless.
If forecasts of the Ministry of Finance come true, GDP per capita in Serbia will reach €4,500 per year, Cvetkovic said.
Speaking about the 2008 budget which is being prepared, he announced that the Ministry of Finance will strive to reduce public expenditure and the participation of budget in GDP for around 1%.
According to current calculations, if the government holds the increase in salaries at the level from December 2006, there will be an increase in the 2008 budget of 14%, explained Cvetkovic.
Minister Cvetkovic also said that the Serbian budget, which this year stood at 24.7% of GDP, will go down by 1% next year, that is, it will put less strain on GDP than in 2007.
Cvetkovic recalled that preparations for the adoption of the law on the 2008 budget have begun. He also said that current fiscal instruments ensure the collection of budgetary income of RSD 630 billion, which will, more or less, be the framework for the next year’s budget.
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