IMF Staff Country Reports

This document presents Serbia’s Second Review under the Policy Coordination Instrument (PCI), and Request for Modification of Quantitative Targets. Serbia’s strong track record of prudent macroeconomic management has built buffers that are helping the authorities navigate a challenging environment marked by ongoing protests, energy security risks following U.S. sanctions on the macro-critical oil company NIS, and global trade tensions. The PCI provides an important anchor for policy credibility and private sector confidence by ensuring fiscal prudence, strengthening energy sector resilience, and supporting authorities’ commitment to transparent, accountable, and rules-based government. Under the PCI, fiscal deficits continue to be kept within the 3.0 percent of GDP ceiling. Monetary policy remains appropriately restrictive, including looking through temporary price fluctuations from recent price and margin controls. Fiscal transparency and accountability are being strengthened through continued reforms in public financial and investment management while energy sector reforms to enhance energy security continue.