Sitemap

Milan Marković, General Manager, Smurfit Kappa Belgrade

Returning Treated Water to the Danube

Here Milan Marković, General Manager of Smurfit Kappa Belgrade, shares his insights about the company’s legacy and innovative strides in environmental protection Founded in 1921...

Bogdan Gavrilović, Managing Director, WTO Serbia

Transport and Logistics Without Borders

World Transport Overseas is one of the fastest-growing logistics companies in Eastern Europe, with branches in Bulgaria, China, Croatia, Greece, Kosovo, North Macedonia, Serbia,...

Vesna Jovanović, Director, EurologSystem

Connecting Italy and Serbia by Rail

EurologSystem, which is set to commemorate two decades of successful operations in 2025, transports an average of 500,000 tons of goods annually, primarily agricultural...

Branko Milikić, Business Development Director at Halcom Serbia

Innovations in Digital Banking

Halcom is a leader in the domain of digital banking and banking solutions. This company has spent 30 years enabling the safe and efficient...

Dragana Ašić Ratkovac, Business Manager Consulting & Tax Advisor at Unija Consulting d.o.o. Beograd

Our View of the Tax World and What’s Important

The success of companies in today’s world depends, among other things, on the ability to adapt to constant amendments to tax laws. My experience...

Dejan Šoškić, Economist, Full Professor Of The University Of Belgrade Faculty Of Economics

Not Everything Is In Others’ Hands – Some Things Are Also In Ours

A belated reaction, or the absence of a monetary policy reaction, can only lead to heightened inflation remaining in the financial system for longer, and it seems that this will be the case

Inflation around the world is mainly generated on the supply side (rising food prices, rising energy prices, rising transport costs and rising prices following reduced supplies of some products due to broken supply chains). However, there are also elements on the demand side, and those are ever-increasing, which create inflationary expectations that need to be addressed through a more restrictive monetary policy. Serbia has just caused inflation demand with the direct distribution of money to citizens ahead of elections. A belated reaction, or the absence of a monetary policy reaction, can only lead to heightened inflation remaining in the financial system for longer, and it seems that this will be the case.

Some components of the current inflation are reminiscent of the inflation from the 1970s, when we were twice subjected to price shocks in oil prices and overall high financial system liquidity. However, we now also have other factors, such as a poor year for agriculture, which – according to the assessment of experts – is a consequence of climate change, and supply chain disruptions resulting from problems hindering global transport and even production, caused by the pandemic.

I believe we’ll struggle to avoid inflation rising over a somewhat longer period, and that will have a negative impact on people’s living standards in the future, and already is

Serbia has been placed in a sensitive position due to the large direct payments from the budget and the erroneous and unnecessary purchasing of the bonds of some companies by the NBS [National Bank of Serbia] a little over a year ago, which represented an unnecessary and mistaken expansionary monetary policy. We simultaneously allowed the dinar to strengthen a few years ago when that wasn’t necessary, and thus “expended” the opportunity to now strengthen the dinar over the short term, in order to reduce the negative impact of global inflation on domestic inflation. At the same time, the NBS still isn’t reacting, which is why I believe we’ll struggle to avoid inflation rising over a somewhat longer period, and that will have a negative impact on people’s living standards in the future, and already is.

Under the conditions of relatively high inflation in euros, and even higher in dinars, coupled with interest rates that are still low, maintaining the real value of money isn’t easy. Apart from investing in real estate and ownership shares in enterprises that operate well, smaller amounts should be utilised to at least attempt to reduce losses through interestbearing placements in banks and investment funds, as well as through the purchasing of government bonds.

Comment by Zoran Panovic

Growth Plan

Late April saw the European Parliament give the green light to the Growth Plan for the Western Balkans, with the Council of the European...

Dr Aleksandar Mitić, Institute for International Politics and Economy

Cooperation with China Raised to the Highest Level in Europe

Both Germany and France desire close cooperation with China, so any criticism of Serbia’s close relations with China is an example of double standards I...

Slobodan Zečević Ph.D, Institute for European Studies

Delicate Seesaw

France and Germany have contrasting views on cooperation with China, but the internal reasons for such views don’t automatically relate to their stance regarding...

Vuk Vuksanović, Belgrade Centre for Security Policy

Russia will be Challenging, but China is the Dilemma of the Century

The geopolitical and security rivalry between the U.S. and China will shape the international system, in which other countries, including Serbia, will face the...

The Foreign Investors Council and EBRD Hosted Conference On Financial Services

The Foreign Investors Council of Serbia, in cooperation with the European Bank for Reconstruction and Development (EBRD), organised the...

Belgrade Prepares for Expo 2027 with a Focus on Play and Creativity

Belgrade is gearing up to host the Specialized Expo 2027, a global event set to captivate the world from...

Sweden’s National Day Celebrated in Serbia with a Touch of ABBA

The Embassy of Sweden in Serbia celebrated the nation's 501st National Day in a lively reception hosted by Ambassador...

Serbian High Jumper Angelina Topić Wins Silver at European Championships in Rome

Serbian high jumper Angelina Topić secured a silver medal at the European Championships in Rome, clearing a height of...

Angola’s Foreign Minister Visits Belgrade, Emphasizes Stronger Ties with Serbian Companies

During an official visit to Belgrade, Angola's Foreign Minister Tete Antonio highlighted the importance of strengthening ties between Angolan...

German Voters Dominate, Malta Least Represented in Upcoming European Parliament Elections

As the 2024 European Parliament elections draw near, set to take place from 6 to 9 June, Eurostat has...

Regional Creative Network Established in Belgrade

In an initiative led by the National Platform "Serbia Creates" and the Ložionica Center, the first gathering of creative...

Chile to Install World’s Largest Astronomy Camera 

Chile is set to install the world's largest astronomy camera atop Cerro Pachón in the Coquimbo region, on the...

Montenegro Earns €17 Million from Toll Roads in Two Years

Montenegro has generated €17 million in toll revenue from the Bar-Boljare-Smokovac-Mateševo motorway in two years Since the opening of the...

John Lennon’s Acoustic Guitar Sells for Over $2.8 Million

An acoustic guitar once played by John Lennon at the height of The Beatles' fame has sold at auction...

German Voters Dominate, Malta Least Represented in Upcoming European Parliament Elections

As the 2024 European Parliament elections draw near, set to take place from 6 to 9 June, Eurostat has...

Regional Creative Network Established in Belgrade

In an initiative led by the National Platform "Serbia Creates" and the Ložionica Center, the first gathering of creative...

Chile to Install World’s Largest Astronomy Camera 

Chile is set to install the world's largest astronomy camera atop Cerro Pachón in the Coquimbo region, on the...

Montenegro Earns €17 Million from Toll Roads in Two Years

Montenegro has generated €17 million in toll revenue from the Bar-Boljare-Smokovac-Mateševo motorway in two years Since the opening of the...

John Lennon’s Acoustic Guitar Sells for Over $2.8 Million

An acoustic guitar once played by John Lennon at the height of The Beatles' fame has sold at auction...
spot_img