economy
Third review of the non-financial arrangement between Serbia and the IMF
Official talks between representatives of the Republic of Serbia and the IMF mission were held in Belgrade from April 23 to May 5 this year, concerning the third review of the implementation of the economic program supported by the current Policy Coordination Instrument (PCI), which the IMF approved for Serbia in December 2024. The first and second reviews of the implementation of the agreed economic program were concluded in June and December of last year with decisions by the IMF Executive Board on their completion.
TL;DR
- Serbia and the IMF reached a staff-level agreement on the third review of the Policy Coordination Instrument.
- The IMF acknowledged Serbia's strong economic buffers but warned of risks from the Middle East conflict affecting growth and inflation.
- Economic growth is projected to accelerate, supported by investments and the EXPO exhibition, while inflation is expected to temporarily rise above target levels.
- Recommendations include ending fuel excise tax cuts, maintaining cautious monetary policy, and advancing fiscal and structural reforms.
- Key reforms focus on improving the business environment, public investment management, and the energy sector's efficiency.
- The agreement awaits approval from the IMF Executive Board.