The first revision of Serbia’s arrangement with the IMF has been successfully completed

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The National Bank of Serbia (NBS) announced that the Board of Executive Directors of the International Monetary Fund (IMF) has decided to successfully complete the first review of the results of Serbia’s economic program, adding that Serbia achieved “a strong recovery policies and strong pre-crisis growth.”
“On that basis, Serbia’s gross domestic product already exceeded the pre-crisis level in the first quarter of 2021, and the IMF is now projecting even higher growth than previously projected growth in 2021 and unchanged growth in 2022 of 4.5 percent,” stated the NBS.
They add that the report emphasizes the importance that maintaining the stability of the dinar exchange rate against the euro, even during the pandemic, has for preserving the overall consumer and investment confidence.
It was also assessed that the banking sector is well capitalized and liquid, that the financial system of Serbia is healthy, as evidenced by all indicators, while important support for medium-term growth will be the development of the capital market and continued dinarization.
Governor Jorgovanka Tabaković pointed out that the decision on the successful completion of the first consideration of the economic program was expected.
She stated that cumulatively, Serbia will achieve one of the best results in Europe in terms of economic growth, that the number of formally employed in the private sector has increased and the conditions for financing the economy, citizens and the state are even more favorable than the beginning of the pandemic.
As she said, the priority for the National Bank of Serbia is to ensure price and financial stability in the medium term, with the support of faster economic and employment growth, further growth of the export sector, as well as a favorable investment environment.
“In the face of challenges from the international environment, the National Bank of Serbia continues to carefully weigh every decision, and the flexibility of our monetary framework, which we created ourselves, allows us to react as soon as conditions require,” Tabakovic said, Danas reports.