Quarterly Monitor of economic trends and policies in Serbia October-December 2006

The main challenge to economic policy in 2006 was to halt inflation, which had run out of control in the preceding year. The Serbian economy scored good results in 2006 with respect to economic growth, reining in inflation and solid growth of exports. On the reverse side of the 2006 coin were the major foreign trade and current account deficits, a considerable appreciation of the dinar, and the high rise in wages, which exceeded the growth of productivity, as well as the fiscal expansion in the second semester. Fiscal policy in 2007 must be revised in order that a balanced budget could be achieved. This would leave enough room for the growth of private investments and spending without triggering inflation and worsening the foreign trade deficit. The NBS could then continue lowering the interest rate, which would do away with pressures for appreciation of the dinar, and it could even depreciate mildly and enhance the competiveness of the economy. Such a combination of fiscal and monetary policy would be sustainable over the medium term and would be a good basis for economic growth.

Quarterly Montor, complete document, download (.pdf) (6 MB):

Quarterly Monitor by the chapters, download:

Impressum, Table of Contents, From the Editor (.pdf) (342 kb).

Trends Review (.pdf) (348 kb).

Trends - International Environment (.pdf) (226 kb).

Trends - Prices Exchange Rate (.pdf) (528 kB).

Trends - Employment Wages (.pdf) (443 kB).

Trends - Economic Growth (.pdf) (492 kB).

Trends - BOP & Foreign Trade (.pdf) (705 kB).

Trends - Fiscal Flows & Policy (.pdf) (515 kB).

Trends - Monetary Flows & Policy (.pdf) (1.28 MB).

Trends - Financial Markets (.pdf) (356 kB).

Croatia`s Recent Experience with Foreign Debt (.pdf) (209 kB).

Crude Oil Extraction Fees in Serbia (.pdf) (290 kB).

VAT in Serbia (.pdf) (457 kB).

Appendix (.pdf) (649 kB).