IMF: Serbia's growth robust, many reforms implemented

Serbia's economic growth is robust, public debt is declining, inflation is low and stable and many key reforms have been implemented, an IMF mission said Tuesday as it concluded an official visit to Serbia.

21 Maj 2019 15:15

BELGRADE - Serbia's economic growth is robust, public debt is declining, inflation is low and stable and many key reforms have been implemented, an IMF mission said Tuesday as it concluded an official visit to Serbia.
Macroeconomic stability has "continued to take hold" and growth in 2018 "rebounded to 4.3 pct - its fastest pace in 10 years," said an a IMF statement released following the 2019 consultations with Serbian officials under Article IV of the IMF Articles of Agreement and the second review under the Policy Coordination Instrument.
"Available fiscal space should be used for capital spending and follow rigorous selection and appraisal procedures to contribute the greatest boost to sustained growth."
"Strong wage growth is expected to support consumption, but domestic demand may turn out weaker if anticipated investments are not realised."
"The full implementation of the wage system reform and reintroduction of pension indexation can also be important tools to underpin fiscal discipline.
Tax policy measures to strengthen competitiveness, raise growth, and boost employment should aim at reducing the tax burden on labour, particularly on low wage earners."
"Improving state-owned enterprise (SOE) governance and efficiency can raise economic growth. Good strides to resolve some strategic enterprises have been made and the overall SOE sector is now profitable, but more can be done," the statement said.


Photo: Tanjug/Office of the Deputy PM/M. Mircetic

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