SeenewsSeenews
Search
Seenews
AlertsSeenewsSeenews
Searchclose
TOPICS
arrow
COUNTRIES
arrow
INDUSTRY
arrow
Economy
arrow
Browse Economy
Mix and match your focus countries with our advanced search
Investments
arrow
Browse Investments
Mix and match your focus countries with our advanced search
Deals
arrow
Browse Deals
Mix and match your focus countries with our advanced search
Tech
arrow
Browse Tech
Mix and match your focus countries with our advanced search
Green
arrow
Browse Green
Mix and match your focus countries with our advanced search
0/5
You have 5 free articles left this month
You have 0/5 free articles
Sign up to get 5 more free articles this month
SIGN UP
arrow
LOGIN
arrow

IMF raises Serbia's 2024 GDP growth forecast to 3.8%

Jul 9, 2024, 9:48:13 AMArticle by Iskra Pavlova
share
July 9 (SeeNews) - The International Monetary Fund (IMF) said the Serbian economy is expected to expand by 3.8% this year, faster than its previous 3.5% growth forecast made in April.

IMF raises Serbia's 2024 GDP growth forecast to 3.8%
Source:IMF

At the same time, the estimate for Serbia's gross domestic product (GDP) increase for next year was revised down to 4.2% from the previous 4.5%, with the economic growth seen decelerating to 4.0% in 2026, the IMF said on Monday. The statement was issued following the conclusion of the third review of Serbia's 2.4 billion euro stand-by arrangement with the global lender signed in December 2022.

The IMF said it is giving Serbia access to some 400 million euro ($433 million), which the domestic authorities will not withdraw since they plan to continue to treat the arrangement as precautionary.

"Macroeconomic outturns under the program remain strong. Growth is increasing, inflation is falling, the current account deficit has narrowed, reserves are at record highs, and public debt is declining," the statement read.

"The 2024 budget foresees a fiscal deficit of 2.2 percent of GDP, but ambitious infrastructure investment under the government’s Leap into the future—Serbia EXPO 2027 development plan entail higher medium-term fiscal deficits than previously envisaged (latest projections are for deficits of 2½ percent of GDP in 2025 and 2¼ percent through 2027). Despite planned higher public investment outlays, public debt remains on a downward path," the statement noted.

In January, Serbian president Aleksandar Vucic said the country plans to invest 17.8 billion euro ($19.3 billion) in preparations for EXPO 2027, with the bulk to go towards the construction of facilities for the event. The four-year investment plan also includes projects in science and technology, energy and environment protection, among others.

The IMF also said that Serbia's inflation is projected to decrease to 3.6% by the end of 2024, down from 7.6% at the end of last year, and to further decline to 3.0% by the end of 2025.

In May, the European Commission raised its economic growth forecast for Serbia to 3.5% for 2024, up from the 3.1% growth projected in November.

($ = 0.923 euro)

Your complete guide to the emerging economies of Southeast Europe. From latest news to bespoke research – the big picture at the tip of your fingers.