Additional EUR 65 m for Serbia - Seventh IMF agreement audit finished successfully

On Wednesday (August 30, 2017) IMF Executive Committee announced that it successfully ended the seventh revision of Serbia's economic results under standby arrangement, and estimated that good macroeconomic results were achieved, that GDP was on a higher level than before the crisis and that labor market conditions are improving.

According to IMF statement, inflation is still within the target and the current account deficit has declined.

IMF estimates that at the same time it is necessary to build stronger institutions and further progress in implementation of structural reform programs to improve economic efficiency, accelerate private sector-based economic growth and accelerate convergence in order to lay the foundations for EU membership.

- Good revenue-based results supported an important fiscal consolidation and enabled reduction of expenditures to be less than planned within the program. However, restricting compulsory current spending is still an important priority in order to reduce public debt and create fiscal space for necessary capital investment and potentially targeted reductions in tax burdens - it is estimated in the statement.

Audit completion will add EUR 64.9 m to Serbia within SBA, thus making total available amount reaching EUR 918.5 m. Serbian authorities announced they do not intend to withdraw funds available within the agreement.

Međunarodni monetarni fond-MMF Beograd

Vlada Republike Srbije

Economic growth of Serbia

GDP of Serbia

fiscal consolidation

arrangement with the IMF

economic results of Serbia

inflation Serbia