NBS: IMF says to continue with responsible policies and reforms

The Serbian delegation met with senior representatives of the International Monetary Fund (IMF) and the World Bank Group (WBG) during the Spring Meetings of the two institutions, and the key message was that responsible economic policy and the implementation of reforms should be continued, the Cabinet of the Governor of the National Bank of Serbia (NBS) announced.

Meetings were held with Bo Li, Deputy Managing Director at the IMF, and Alfred Kammer, Director of the European Department at the IMF. The discussions centered on the results of the ongoing program supported by the non-financial advisory Policy Coordination Instrument (PCI), approved to Serbia in December 2024.

A focus was also placed on the current macroeconomic developments, the outlook for Serbia, and policies pursued in the country in the context of global challenges, including the sharp rise in energy prices triggered by the Middle East conflict.

Bo Li commended Serbia on its strong track record in implementing the PCI-supported program. He noted that the global economy is facing successive crises and that, in such circumstances, the IMF will continue to support Serbia.

He pointed out that it is essential to maintain a prudent monetary stance, press ahead with structural reforms, and ensure that economic policy remains cautious. At the global level, this crisis should be seized as an opportunity to transform energy sectors and harness the benefits offered by artificial intelligence, he added.

Alfred Kammer noted that Serbia should continue its strong performance in the area of monetary policy, adding that the IMF remains committed to supporting sound economic policies for the benefit of Serbia’s citizens, says the press release by the Central Bank.

The Serbian delegation presented the results achieved since October last year and expectations going forward, the NBS adds.

Inflation is within the target range of 3±1.5% – it stood at 2.7% at end-2025 and 2.8% in March this year.

Thanks to the government’s swift measures to stabilize the petroleum products market during a severe disruption caused by the Middle East conflict, there was neither a price shock nor any interruption in supply, says the press release by the governor’s cabinet.

It is added that the dinar-euro exchange rate remained stable despite the challenges, while FX reserves were kept at levels well above all adequacy standards, covering 6.5 months’ worth of the country’s import of goods and services.

The banking sector is stable, resilient, well-capitalized, highly liquid and growth-supporting, with investment and housing loans rising robustly.

– FDI inflows remain diversified by sector and geography, with the largest share still channeled to manufacturing (22%), bolstering automotive industry exports both last and this year – said the NBS.

GDP is expected to pick up in 2027, driven by investment and elevated services exports owing to Expo.

As said, the Serbia 2030–2035 Strategy, setting out the key directions for the country’s development in the years ahead, will help generate new sources of growth.

Međunarodni monetarni fond-MMF Beograd

Narodna banka Srbije Beograd

Svetska Banka-WB Beograd

International Monetary Fund

IMF

National Bank of Serbia

NBS

World Bank

Bo Li

Alfred Kammer

Policy Coordination Instrument

economic policy

monetary policy

inflation