Serbia Economic and FDI Outlook

Since the Adoption of the Strategy, Significant Progress Has Been Made in the Field of Dinarization Households are predominantly indebted in dinars and dinar savings records maximum level National Bank of Serbia Macroeconomic stability dinarisation process contributing Chart 31 Dinarisation of the corporate and household sector receivables and deposits, and dinar share of public debt to Chart 32 Dinarisation of corporate and household sector (in %) 50 NNW w A A 20 30 25 40 35 45 42.3 (outstanding amounts, in %) Corporate sector deposits 60 Corporate and household 40 sector receivables 20 35.0 22.3 Household sector receivables 15 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Corporate and household sector receivables, outstanding amounts Corporate and household sector deposits, outstanding amounts Dinar share of public debt 2023 2024 2012 Corporate sector receivables Household sector deposits Corporate and household sector deposits February 2024 NBS stimulates the dinarisation process by delivering low and stable inflation in medium-term, preserving relative exchange rate stability and using other measures to stimulate dinar source of finance. •The Government contributes to dinarisation through tax policy, by developing the dinar securities market - dinar debt share rose from 2.5% in 2008 to 22.3% in February 2024. • Dinarisation of corporate and household sector deposits rose by 23.0 pp compared to end-2012 to 42.3% in February 2024. Dinarisation of corporate and household sector claims amounted to 35.0% in February 2024 (up by 7.0 pp compared to end-2012). . Over the past years, dinarisation of household receivables had a firm upward trend as a result of NBS measures aimed to support dinarisation an upsurge from 35.1% (2012) to 54.3% (February 2024). - Dinar savings of households (residents) recorded double- digit annual growth in period 2018-2021, while its temporary reduction in the beginning of 2022 was the consequence of growing uncertainty caused by the escalation of geopolitical tensions at the international level. During 2023 it has increased by 43.2%, while in first three months of 2024, dinar savings grew by RSD 13.7 bn, to RSD 151.6 bn end-March. 18

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