IMF Assembly: Serbia is committed to implementing reforms

The Serbian delegation, led by National Bank Governor Jorgovanka Tabakovic, met with IMF representatives and a large number of investors in Washington.

Tao Zhang, deputy director of the IMF, said that Serbia distinguished itself for its commitment to the main economic vectors that serve to implement structural reforms.

The meetings were organized as part of the regular annual meeting of the International Monetary Fund and the World Bank Group.

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Zhang reiterated that the IMF would remain a reliable partner in the implementation of reforms in Serbia thanks to the arrangement implemented through the Policy Coordination Instrument in July 2018.

Governor Jorgovanka Tabakovic confirmed that Serbia has used the previous period to strengthen macroeconomic stability in the country, where full policy coordination has played an important role. For example, she pointed out that inflation in Serbia was under control (2% average) and that public finances were in order thanks to a state that contributed strongly to the growth of investments in Serbia.

Serbia is now associated with a significantly lower risk, which is at its lowest level in September, below 50 basis points, and the country’s credit rating was increased and is just one grade from investment rating. A strong fiscal adjustment also led to a decline in public debt to around 50% of GDP, faster than expected.

Asked by Zhang what caused such results, Tabakovic said that Serbia has an advantage that very few countries can boast of, including the consistency of monetary and fiscal policy, which is the basis for achieving these results, unlike other countries where one policy dominates another.

During a meeting with the IMF Director Europe, Paul Tomsen, it was concluded that Serbia’s good cooperation with this institution continued within the framework of the current agreement with the IMF, which is of an advisory nature and does not provide use of financial resources. It was also said how the economy has shown resistance to influences from the international environment.

During the meetings at all levels, Serbia was taken as an example of a country with above-average investments and results in the private sector, with good labour market trends reflected in strong employment and wage growth.

A concrete confirmation that the Serbian economy is considered stable and has good prospects is also seen in the influx of foreign direct investment, which last year reached 8.2% of GDP, and during the eight months of this year, it was even higher (35% increase relative to last year).

(B92, 20.10.2019)

This post is also available in: Italiano

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