An International Monetary Fund (IMF) mission, led by James Roaf, visited
Belgrade during January 29–February 5, 2019 to assess the 2018 outturn, discuss progress in implementation of
commitments under the Policy Coordination Instrument (PCI),[1] and agree on policy priorities for 2019. A full mission for the second
review under the PCI, combined with the 2019 Article IV Consultation, is
planned for May. At the conclusion of the visit, Mr. Roaf issued the
following statement:
“Serbia’s economic program continues to deliver strong results. At 4.4
percent, growth in 2018 was the fastest for over a decade. Annual
inflation, at 2 percent in December, remains in the lower half of the
target band. Fiscal performance has remained strong. The general government
posted a fiscal surplus of 0.6 percent of GDP in 2018, consistent with PCI
targets, and public debt declined to about 54 percent of GDP. Continued
improvements in labor market participation have been supported by robust
employment growth and declining unemployment.
“The mission supported the authorities’ plan to move forward expeditiously
with the privatizations of Komercijalna Banka and HIP-Petrohemija. We also
stressed the importance of advancing preparations to ensure the
implementation of the new public wage system in 2020 and moving to a more
flexible public employment framework. We discussed options to strengthen
fiscal rules, including the re-introduction of pension indexation in 2020.
We also emphasized the importance of strengthening the governance of public
and state-owned enterprises to improve efficiency and the quality of public
services. We supported the authorities’ ongoing efforts to improve the
prioritization and appraisal of public investment.
“On a personal note, this was my final visit as IMF mission chief for
Serbia. The next mission, planned for May, will be led by Mr. Jan Kees
Martijn. I am extremely grateful for the authorities’ hospitality and close
cooperation during the past 3½ years, and I congratulate Serbia on the very
good progress made in macroeconomic stabilization, growth and job
creation.”
[1]
The Policy Coordination Instrument (PCI) is available to all IMF
members that do not need Fund financial resources at the time of
approval. It is designed for countries seeking to demonstrate
commitment to a reform agenda or to unlock and coordinate financing
from other official creditors or private investors.
