Economy Finance

Serbia facing interest rate hikes, inflation and a gas crisis; US in talks on strategic investment

Serbians were buffeted by tough economic news Thursday (Oct. 6) with reports that the Central Bank would likely set interest rates to a five-year high in order to slow inflation when only one day earlier Serbian President Aleksandar Vucic warned that Serbian has only three months in terms of gas reserves—indicating that the energy crisis spawned by the war in Ukraine may soon become critical.

With regard to interest rates, local economists expected the one-week repurchase rate to increase to 4 percent Oct. 6, as cited by, which was itself citing Bloomberg.

The online publication added that this would be the seventh straight rate increase. That said, GDP growth still is a regional leader, as it has been predicted to come in at 4 percent for 2022.

Meanwhile, gas and oil shortages may stem growth optimism, as Vucic noted that Serbia has at this time gas equal to only three months of winter usage, according to a joint statement, following meetings with Austrian Prime Minister Karl Nehammer and Hungarian Prime Minister Viktor Orban. Vucic noted that combined reserves come to about 660 mln cubic meters of gas.
Some gas may be drawn from Hungary, Vucic stated, adding in fact that reserves at this time would cover only 70 percent of usage per month for three months.

That said, Serbia and the US were noted as currently holding meetings to bolster energy needs, with Serbian Minister of Mining and Energy Zorana Mihajlovic and U.S. Ambassador to Belgrade Christopher Hill in talks, according to

Mihajlovic noted that US companies were considering local investment, and she highlighted the current construction of the Djerdap hydropower plant. As quoted by the website, US Ambassador Christopher Hill said that the US is close to a strategic agreement with Serbia on energy matters.

Photo credit: Chatham House, CC BY 2.0 <>, via Wikimedia Commons

Dodaj komentarz

Twój adres e-mail nie zostanie opublikowany. Wymagane pola są oznaczone *