The current macroeconomic data shows that the economic activity in Serbia is recovering, based mostly on the rising foreign demand and past dinar depreciation, the National Bank of Serbia has announced.

September 2010 industrial output went up by 2.6 percent compared to the same month last year. The entire output in 2010 is 4.4 percent better than over the same period last year.

The growth of the overall industry will still be important in reaching the expected GDP growth for this year, which should be at 1.5 percent, according to the central bank.

Better export is the key factor in the economic recovery. It increased by 21.1 percent between 2009 and 2010 when measured in euros, and in September alone it went up by 27.5 percent.

As a result of improved economic activity, import has also increased between 2009 and 2010. It rose by 8.9 percent in the first nine months of this year and 23.9 percent in September.

Interannual inflation in October above nine percent

The National Bank of Serbia (NBS) assessed that the interannual inflation in October will go over nine percent, which is above the upper limit of the allowed variations within the October target inflation of 6.3 plus/minus two percent.

The assessment was made based on the increase in the retail prices in October which increased by 9.9 percent compared to the same month in 2009, while the consumer price index increased by 8.6 percent.

The retail prices of goods and services in the Republic of Serbia in October 2010 have increased by one percent on average compared to September.

The consumer price index in October was up by 1.1 percent compared to September, the data of the Statistical Office of the Republic of Serbia showed.