Republic of Serbia: 2025 Article IV Consultation, First Review Under the Policy Coordination Instrument, and Request for Modification of Targets-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Serbia
July 10, 2025
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Serbia’s prudent macroeconomic policies and strong engagements with the IMF
have delivered impressive results. Economic growth has been resilient, and fiscal and
external buffers have strengthened. After successfully completing an IMF-supported
Stand-By Arrangement (SBA), the authorities requested a 36-month, non-financing Policy
Coordination Instrument (PCI)— approved in December 2024—to reinforce their
commitment to sound policies, support structural reforms, and anchor fiscal discipline.
Reflecting these achievements, Serbia received its first-ever investment grade sovereign
rating last year. Inflation has gradually declined toward the National Bank of Serbia’s midpoint
target, and unemployment has fallen to its lowest level in a decade. However, rising
headwinds are weakening a cyclical upswing of the economy, and risks are to the
downside with heightened domestic and global uncertainty.
have delivered impressive results. Economic growth has been resilient, and fiscal and
external buffers have strengthened. After successfully completing an IMF-supported
Stand-By Arrangement (SBA), the authorities requested a 36-month, non-financing Policy
Coordination Instrument (PCI)— approved in December 2024—to reinforce their
commitment to sound policies, support structural reforms, and anchor fiscal discipline.
Reflecting these achievements, Serbia received its first-ever investment grade sovereign
rating last year. Inflation has gradually declined toward the National Bank of Serbia’s midpoint
target, and unemployment has fallen to its lowest level in a decade. However, rising
headwinds are weakening a cyclical upswing of the economy, and risks are to the
downside with heightened domestic and global uncertainty.
Subject: External debt, Financial institutions, Labor, Labor markets, Loans, Public debt
Keywords: audit of the NBS, Europe, Global, headline inflation, inflation expectation, IT governance, Labor markets, Loans, NBS inflation tolerance band
Pages:
124
Volume:
2025
DOI:
Issue:
176
Series:
Country Report No. 2025/176
Stock No:
1SRBEA2025001
ISBN:
9798229017114
ISSN:
1934-7685
