Serbia posts strong economic outturns under SBA program - IMF

"The programme remains on track with all end-December 2023 quantitative targets met, and all end-March 2024 indicative targets expected to be met based on available data," the IMF said in a statement on Tuesday. "Macroeconomic outturns under the program remain strong, with growth recovering, a solid fiscal position, ongoing disinflation, record-high reserves, and a strong labor market."

The staff-level agreement is subject to approval by the IMF’s executive board, which is scheduled to consider it in the second half of June. An approval of the review will make available to Serbia 400 million euro ($433.3 million) under the stand-by facility.

An IMF mission, led by Donal McGettigan, held meetings with the Serbian authorities during March 14-26 to discuss performance under Serbia’s SBA.

"Considering the strong accumulation of reserves and fiscal buffers and the reduction in macroeconomic imbalances, the authorities expressed their intention to continue treating the SBA as precautionary," McGettigan said in the statement.

The IMF expects Serbia’s economy to expand by 3.5% this year and by 4.5% next year, as domestic demand increases. Risks to Serbia’s economic outlook include geopolitical and energy sector developments, uncertainties over trading-partner growth, and further global financial market instability, while the country should continue with its energy sector reforms, as per the statement.

In December, the IMF allowed Serbia access to some 400 million euro upon concluding a second review of the stand-by facility. It noted back then that the Serbian authorities intend to treat the SBA as precautionary starting from the second review, one review earlier than planned.

$ = 0.9230 euro