IMF welcomes Serbia’s progress on reforms, projects 3.5% growth in 2024

The IMF also warned Serbian authorities against the risks of relapse, particularly from the accumulation of external shocks.

International Monetary Fund (IMF) logo as seen outside its HQ in Washington | Representational image | Reuters

The International Monetary Fund (IMF) has welcomed the Serbian authorities’ progress in implementing reforms agreed with the country under the Stand-By Arrangement (SBA), which provides support to Serbia’s efforts to achieve sustainable growth and improve fiscal resilience, IMF said in a statement.

In a statement issued on Tuesday, the IMF said the macroeconomic outlook for Serbia remains strong, with growth projected to reach 3.5 percent in 2024, while inflation is expected to fall within the target range of the National Bank of Serbia by summer of 2024.

The Serbian economy has been performing well under the Fund-supported program, despite the challenging global and regional environment. The country has made significant progress in strengthening its institutions, improving the business climate, and strengthening its regulatory framework, it added.

The IMF welcomed the Serbian authorities’ commitment to continued reforms, including in the areas of energy, investment, and structural reforms.

The existing monetary policy stance is appropriate and is consistent with ongoing disinflation. While disinflation has outpaced earlier projections, it would be prudent not to loosen monetary policy prematurely given remaining inflation risks, including the tight labor market, it added.

The IMF encouraged the Serbian authorities to improve the investment management framework, while also warning them against the risks of relapse, particularly from the accumulation of external shocks.