The latest macroeconomic trends point to a larger-than-expected 7 percent GDP growth this year, Finance Minister, Zdravko Maric, said on Thursday.

The government’s current GDP growth forecast for 2021 is 5 percent.

Maric said in a news conference that tax revenues from 1 January to 31 August this year were 0.7 percent higher compared to the same period last year, while the income from VAT was 4 percent higher.

Income from profit tax is a little lower from last year, but “that was to be expected given that that is calculated based on business results in 2020,” Maric said. Contributions for pension insurance paid out of gross salaries were 4 percent higher.

Asked by the press about possible inflation in autumn particularly regarding food prices, Maric said that the latest data “calls for caution.”

Inflation in July was 2.8 percent year-on-year, the highest rate on record since April 2013. Consumer prices are largely fueled by industrial producer prices which in July increased 7.9 percent year-on-year, the jump since April 2011.