IMF: Serbian economy has shown resilience in face of strong headwinds

BELGRADE - The Serbian economy has shown resilience in the face of strong headwinds from high food and energy prices, weak trading partner growth, and tight global financial conditions, the International Monetary Fund (IMF) said on Wednesday after its mission completed the first review under a stand-by arrangement with Serbia.

"The mission benefited from constructive discussions and reached staff level agreement on the conclusion of the first review under the Stand-By Arrangement," the IMF said in a statement released following the mission's two-week visit to Belgrade.

"Macroeconomic outturns under the programme are strong. These include a narrower-than-expected fiscal deficit, a narrower current account deficit, and higher foreign exchange reserves amid strong and diversified foreign direct investment inflows," it said.

"But inflation and uncertainty remain high and macroeconomic policies should continue to focus on reining in inflation through a tight policy mix and on further strengthening buffers," it noted.

"Forcefully pursuing a structural reform agenda centered on energy sector reforms is critical for addressing Serbia’s vulnerabilities and supporting long-term growth," the IMF also said.