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Serbia's central bank governor Dejan Soskic said on Monday the bank believes the country's GDP will grow 1.5% in 2012, while it will be at around 2% this year, Tanjug reported. The National Bank of Serbia (NBS) earlier lowered its projections for this year's economic growth from 3% to 2.5%.
The changes in the prognosis for next year are largely based on the assumption that Serbia's biggest economic partners in the EU - Italy, Germany and Romania - are going to record low GDP growth rates because of the economic crisis, Soskic told a news conference. He expects the International Monetary Fund to come up with similar 2012 projections for Serbia.
According to NBS estimates, 2012 GDP growth will mostly be guided by growing investment and, to a lesser extent, net exports, while consumption will remain depressed, the governor noted.
Commenting on the possibility of the eurozone crisis spilling over into Serbia, Soskic stated the NBS was carefully monitoring all banking operations and that there were no disturbing activities. According to him, the NBS has mechanisms to respond to a potential spread of the international financial crisis into Serbia's banking system.
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