LONDON – Serbia’s medium-term growth prospects “remain favourable if macroeconomic and external stability is sustained and economic reforms progress, backed by relatively good human capital endowment and a speed-up in the EU accession process,” says the EBRD Transition Report 2015-16.
The Serbian government should continue reforms to achieve sustainable long-term fiscal adjustment, the EBRD notes in the report, adding that Serbia’s fiscal consolidation results in 2015 were better than expected.
“Consistent implementation of structural reforms envisaged under the IMF programme (most notably the reforms of public administration and state-owned enterprises) is key to achieving sustainable long-term fiscal adjustment and improving growth prospects,” says the document, published on the EBRD website.
“Efficient execution of public investments is necessary for long-term convergence. Public investments significantly underperformed the plan this year (in 2015). The preparation and implementation of public investment projects should be accelerated in order to support long-term growth,” the report said.