World Bank: Serbia to see 2.3 pct GDP growth in 2023

BELGRADE - In 2023, Serbia will see GDP growth of 2.3 pct - the same as last year - and 3.0 pct and 3.8 pct growth in 2024 and 2025, respectively, and its debt-to-GDP ratio will decline to 55.5 pct this year and to 53.1 pct and 51.5 pct in 2024 and 2025, respectively, the World Bank said in its latest Europe and Central Asia Economic Update.

It said Serbian inflation had been at 11.9 pct in 2022 and was projected to reach 12.2 pct this year and decline to 5.3 pct and 3.5 pct in 2024 and 2025, respectively.

In the report, the World Bank said that, in 2023, the budget deficit was projected to remain unchanged from last year - 3.1 pct, and decline to 2.2 pct and 1.4 pct in 2024 and 2025, respectively.

"The government is committed to reducing the fiscal deficit and public debt over the medium term. To ensure that these fiscal targets are met, in December 2022, the government changed the deficit ceiling fiscal rule and introduced two new rules for the wage bill and spending on pensions," the World Bank said.

"Commitment to the fiscal rules, together with improving corporate governance of SOEs through a comprehensive reform program will be critical to enhance Serbia’s fiscal sustainability over the medium term," it also said.