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Home ECONOMY

Central Bank: Economy gradually recovering, pandemic risks still present

February 3, 2022
in ECONOMY, NEWSROOM
Investment Committee: Economic and Investment Plan for Western Balkans stimulus to support economic growth
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The National Bank Council has held a regular session and adopted the report for the final quarter of 2021, which shows a rise in year-over-year crediting by 8.3 percent and deposits by 7.5 percent.

The relaxed monetary policy was implemented amid a solid level of foreign currency reserves. There were upward price trends in the final quarter, primarily owed to factors on the demand side. Q4 saw an acceleration of the inflation as a result of developments in the food and energy component, and temporary mismatching of offer and demand caused by the pandemic.

Domestic inflation goes in line with Eurozone trends. Nevertheless, considering the uncertainty and changeability of factors affecting the price level, there are upward inflation risks, says the National Bank. It adds that the economy is gradually recovering, with relatively limited effects from the new waves of the virus spread, along with further immunization, less restrictive measures and adaptation of entities and policies.

Uncertainty and risks continue to exist both in global and domestic terms, related mainly to the future course of the pandemic. The central bank continues to closely monitor developments and risks, both inside and outside, for the purpose of adapting the setup of the monetary policy.

Source: MIA
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