National Bank of Serbia Governor Dejan Soskic said on Oct. 10 that he expected inflation would continue to fall in Serbia and that annual inflation would be in single digits at the end of September.

"Food prices have stabilized and the growth of regulated prices has slowed down, and relatively low aggregate demand can be seen on the market so we are not expecting additional pressures and I believe that disinflation factors will dominate," Soskic told a news conference.

He emphasized that inflation in the last quarter was around zero and that it could be said that Serbia's macroeconomic system had regained stability in regard to price trends. Gross domestic product growth in 2011 will be 2.5 percent, especially on the basis of rising private investment.

He said that Serbia's GDP still had not reached the level it was before the crisis in 2008, but that he expected Serbia would return to pre-crisis levels of economic activity next year if there were no large economic shocks on the international market.

The governor also said that a somewhat larger deficit of the current account was expected, around 7.6 percent of GDP this year due to predominantly investment-based economic growth.