IMF: Serbia in recession in 2015 as well, recovery next year

According to estimation of International Monetary Fund (IMF), Serbia will this year remain in recession with negative growth of 0,5%, so that in 2016 it would recover and record a positive increase of 1,5%.

However, IMF warned at the problem of high public debt and budget deficit in Serbia which is why there is a need for fiscal consolidation and limitation of public consumption as well as for restructuring key state-owned companies.

Economic growth in the Balkans countries which were hit by catastrophic floods last year will speed up in 2015 and 2016 thanks to recovery in Bosnia and Herzegovina and Serbia as well as employment increase in other countries in the region, IMF states.

Economy of the countries of so -called "Developing Europe" which this year obviously increase moderately thanks to lower oil prices but poor foreign demand will halt more significant economic progress, IMF forecasts within its spring World economic forecast.