The Executive Board of the IMF says it has successfully completed the 7th review of Serbia’s economic results under the framework of its standby arrangement, and assessed that Serbia has achieved good macroeconomic results, that the country’s GDP is higher than prior to the crisis, and that market conditions are improving.
According to the IMF statement, the inflation is still within the projected target, while the current account deficit has declined.
The completion of the review will make available an additional SDR 54.565 million (€64.9 million) available to Serbia under the SBA, bringing the total funds available to SDR 771.705 million (€918.5 million). The Serbian authorities have indicated that they do not intend to draw on the resources available under the arrangement.
Following the Executive Board’s decision, Mr. Tao Zhang, Deputy Managing Director and Acting Chair issued the following statement:
“The program remains on track and is supporting improved confidence and stronger growth. Real GDP is now above pre-crisis levels and labor market conditions are firming, while inflation remains anchored within the target band and the current account deficit has narrowed. At the same time, building stronger institutions and further progress on implementing the structural reform agenda are needed to improve economic efficiency, bolster private sector-led growth, and put Serbia on a faster convergence path to create a platform for EU accession”, he adds.
Mr. Zhang goes on to say that “the reforms in areas that have faced delays – modernizing education, strengthening tax administration, and restructuring of state-owned enterprises and utilities – should be carried out expeditiously. Financial sector reforms under the program have strengthened the resilience of the sector. It is now in a stronger position to fully support future growth. However, efforts to reduce NPLs need to continue, and reforms of state-owned financial institutions need to be accelerated”.
(RTS, IMF, 30.08.2017)
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