IMF Mission ends visit to Belgrade – Serbia has good results, structural challenges remain

The short-term macroeconomic perspectives of Serbia are positive, but the risks and structural economic challenges remain, the International Monetary Fund (IMF) reported on Monday, March 6, 2017, at the end of its visit to Serbia.

The IMF delegation was headed by James Roaf, who estimated that the economic program of Serbia had given good results, that the growth of the gross domestic products (GDP) in 2016 had reached 2.8%, along with an increase in investments, export and employment.

The fiscal indicators exceed the programmed targets and the deficit has been reduced to 1.4% of GDP, which is the lowest level since 2005, the IMF delegation pointed out in its report.

– General government debt declined to 74% of GDP in 2016. Importantly, unemployment is on a firm declining trend, as are nonperforming loans in the banking sector – the IMF says.

The short-term macroeconomic perspectives are positive and the economic growth in 2017 is projected to be 3%, whereas the inflation is expected to remain within the target band.

– However, risks remain and structural economic challenges persist. In this context, the mission stressed the need to fully implement the authorities’ reform agenda to cement hard-won macroeconomic gains, reduce fiscal risks from state-owned enterprises, further strengthen financial stability, and boost Serbia’s medium-term growth and employment – the IMF report says.

The IMF Mission especially emphasized the importance of full implementation of the planned reform of public administration, healthcare, education and tax administration, as well as measures to enhance public investment management.

The next IMF Mission visit to Serbia for the seventh review of the arrangement is planned for May.

Međunarodni monetarni fond-MMF Beograd

IMF

International Monetary Fund

James Roaf

economic program of Serbia

GDP of Serbia

public debt of Serbia

non performing loans

public administration reform

administration reform