The International Monetary Fund (IMF) has welcomed the progress made by Serbia in strengthening its economy, but warned against the risks that could derail the country’s recovery.
In a statement issued Tuesday, the IMF said the Serbian authorities had successfully implemented the third review under the Stand-By Arrangement (SBA), which provides support to countries in crisis. “The program remains on track with all end-December 2023 quantitative targets met, and all end-March 2024 indicative targets expected to be met based on available data,” the IMF said.
The review by the IMF team, led by Donal McGettigan, concluded that the Serbian economy has been performing well under the Fund-supported program, despite the challenging global and regional environment. “Macroeconomic outcomes in 2023 exceeded expectations and are expected to remain strong in 2024,” the statement said, projecting that growth will increase to 3.5 per cent in 2024. It warned, however, that external shocks, including the global financial market instability, remain a risk for Serbia’s economic outlook.
The IMF team also cautioned that the country’s debt has remained at a sustainable level, while the improvement in the business climate and the strengthening of the rule of law are important steps in addressing the challenges. “The existing monetary policy stance is appropriate and is consistent with ongoing disinflation,” the statement said, adding that the IMF team expects the Serbian authorities to maintain the focus on fiscal sustainability and the creation of sustainable growth opportunities.