of the financial system. implementation of basel iii in the eu, planned as of the next year, will most probably bring new challenges and further reduce the exposure of eu banking groups towards countries of central and eastern europe. however, encouraging banks to tap longer - term and more stable sources of funding and resorting to alternative ways of funding, chiefly in regard to domestic saving and funds of international financial organisations, may mitigate negative consequences of these processes. when it comes to serbia, it should also be borne in mind bis central bankers ’ speeches that deleveraging may help lower the degree of economy ’ s euroisation as a lower volume of foreign exchange sources of funding will encourage banks to obtain and lend funds in the domestic currency to a greater extent. in the current circumstances, it is obvious that the achievement of sustainable external equilibrium and credibility of fiscal policy are paramount for the improvement of serbia ’ s credit rating and a stable inflow of foreign direct investment and other forms of foreign capital. as i have already underscored, depreciation helps reduce external disequilibrium, primarily over the short run, by ensuring price competitiveness of the domestic economy. however, it does not eliminate the main causes that brought about the deepening of this disequilibrium. the key to the lasting removal of external disequilibrium and ensuring sustainable economic growth are structural reforms directed at productivity growth and economic competitiveness. a better credit rating will enable more favourable borrowing in foreign markets and a more stable inflow of foreign capital needed to finance new investment and encourage employment. this will ultimately contribute to the stability of the foreign exchange market and facilitate operation of the corporate sector. provided the government takes decisive steps in implementation of key reforms of the tax and pension systems, including corporatisation of the public sector, it is highly probable that serbia ’ s credit rating will not only be sustained but upgraded as well. in contrast, further widening of the fiscal deficit would bring about a higher public debt and deterioration in external liquidity. therefore, in defending the country from the current crisis, economic policy makers face numerous limitations. some of these limitations also represent a chance to set the country ’ s economic growth on long - term stable foundations, which should be the centrepiece of any responsible economic policy. on its part, the national bank of serbia will continue to stabilise inflation at a low level and maintain a sound financial system, this being the best way to help the economy in the current circumstances and

measured 36. 2 % ). the effects of macroeconomic stability also lie at the core of investment growth, which additionally accelerated from the start of 2018 and, judging by all indicators, investment share in gross domestic product is likely to exceed 22 % in the year as a whole. apart from increased profitability of corporates and previously mentioned investment loans, a step - up in private investment growth in recent years was also spurred by foreign direct investment. all of this confirms that we are an economy that now attracts an increasing number of non - resident investors with a long - term focus. the rise in foreign direct investment has continued and this year we expect to see a net inflow of around eur 2. 6 billion. chart 13 better financial result of the corporate sector chart 14 investments supported by a rise in profitability, ( in rsd bn ) lending and fdi gave a considerable contribution to gdp growth ( in pp ) 4. 0 3. 5 2. 8 2. 6 1. 9 0. 8 - 1 - 100 - 1. 0 - 1. 8 - 2 - 3 - 200 source : business registers agency. exchange rate losses interest expenses financial result of the corporate sector sources : sors and nbs calculation. * nbs estimate. 2018 * 2019 * net exports final consumption total investments gdp ( in % ) thanks above all to sizeable investment growth, we revised our gross domestic product growth projection for this year from 3. 5 % to around 4. 0 %. that serbia ’ s economic growth stands out is also confirmed by the assessment of the european commission, which sees serbia as the greatest contributor to the western balkan economic growth in 2018. progress in the real sector spills over to the labour market as well, with private sector employment posting a constant rise and the number of the unemployed plunging to its twenty - year low. ladies and gentlemen, esteemed members of the press, dear colleagues, i would like to reiterate that these are only some of the key results we have achieved since 2012 to date. however, it would be immodest to say that we are the only ones to be credited for these results. these measures yield full effects only in coordination with other government policies, and this has been achieved in serbia. i believe that in the last six years we got to know each other very well, so you can rest assured that in the period ahead we will continue to work to the benefit of our citizens and the economy, primarily by ensuring stability