Today, the National Bank Council held its regular session and discussed the recent macroeconomic indicators. The Council concluded that this information, that is regularly discussed at its sessions, also this time indicates sound economic fundamentals and absence of imbalances in the economy.
According to the latest indicators of economic activity, it grows in the first half of this year, amid an annual GDP growth of 3.6%. The new available data for the third quarter indicate further growth. Inflation remains in the zone of moderate changes, amid an average annual price growth of 1.1% in the first eight months, which is slightly lower than expected. In the discussion, the Council again emphasized that the uncertainty about the forecast movement of world primary commodities prices remained the major risk for the inflation dynamics.
At the session, special emphasis was placed on the external position, which was assessed as favorable. The lower current account deficit and the financial inflows enable constant purchase of foreign currency in the foreign exchange market by the National Bank and growth in foreign reserves. In the discussion about the monetary sector developments, the Council noted that the growth of total deposits and total loans is continuous and generally within the expectations.
Attention was also paid to the latest estimations for the global economic flows, which indicate less favorable outlook for the global economy. The further escalation of the trade war between the USA and China still poses a major risk to the global economic growth. The other risks refer to the possible greater deceleration in the growth of systemically important economies such as China and the euro area, the extremely high uncertainty about the implementation of the Brexit process, the risks associated with the increased financial vulnerability of certain emerging economies, the increasing disinflationary pressures, as well as the increased geopolitical risks globally.
The Council has also discussed other matters within its jurisdiction.
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