WASHINGTON – The IMF Executive Board Wednesday completed the combined fourth and fifth reviews of Serbia’s economic performance under a stand-by arrangement, noting the country’s economic recovery “has exceeded expectations, supported by efforts to strengthen public finances, advance structural reforms and boost investment confidence.”
“However, vulnerabilities remain, including from elevated public debt and lingering structural challenges in an uncertain external environment. Full implementation of program commitments is critical to strengthen the foundations for robust and inclusive growth, restore public debt sustainability and rebuild policy buffers,” said Deputy Managing Director Tao Zhang.
“The fiscal over-performance has continued in 2016. The challenge is to sustain the fiscal adjustment to place the high public debt firmly on a downward path,” he said.