Overview of Serbia’s finances with IMF: 2027 budget ready by year-end, deficit up to 2.75%

The budget for the coming year will be finalized by the end of the year, and the deficit is expected to remain within the 2.75% limit, stated Sinisa Mali, the Minister of Finance in the caretaker capacity. He met with an International Monetary Fund (IMF) mission delegation led by Annette Kyobe, currently visiting Serbia for the fourth review of the ongoing non-financial arrangement - the Policy Coordination Instrument (PCI).

The 36-month PCI arrangement covers the period from December 2024 to December 2027. The third review under the PCI arrangement was concluded at an IMF Executive Board meeting on June 15, 2026, while the fourth review is set to conclude at an IMF Executive Board meeting scheduled for December 11, 2026.

According to the Ministry of Finance, Mali and Kyobe discussed Serbia’s key macroeconomic indicators and the country’s most significant economic challenges, taking into account current global events whose effects inevitably spill over into Serbia.

Mali expressed confidence that the targeted deficit was achievable and emphasized that Serbia was keeping its public debt stable and under control. He also noted that inflation in Serbia had stood at 1.9% in July, a result he deemed positive, given the external economic pressures affecting Serbia due to global conflicts.

– Once all those conflicts come to an end, I believe things will be much easier – said Mali.

He emphasized that he was particularly optimistic about the economic outlook for 2028, given that the entire world expected a stabilization of tensions by then, specifically regarding the conflicts in Ukraine and the Middle East, as well as the pressures on the energy sector that impacted the global economy.

Ministarstvo finansija Republike Srbije

Međunarodni monetarni fond-MMF Beograd

Ministry of Finance

International Monetary Fund

IMF

IMF Serbia arrangement