NBS Governor Jorgovanka Tabaković and First Deputy Prime Minister and Finance Minister Siniša Mali had a meeting with the IMF Deputy Managing Director Mr Bo Li.

Mr Bo Li commended the robust growth of the Serbian economy. “Serbia is one of the fastest-growing economies in Europe, despite numerous challenges from the global environment. The demonstrated resilience of the Serbian economy is impressive!

We continue to work productively with Serbia under the new non-financial advisory Policy Coordination Instrument. Our advice to all IMF member countries is to exercise caution in formulating and implementing economic policy measures. Serbia has adopted precisely such an approach.

Serbia has proven itself as a country achieving strong results amidst global uncertainty. Serbia has built substantial buffers, and it is crucial to preserve them, as many countries lack such safeguards. It is equally important to maintain policy credibility, as well as central bank independence, which is under threat in some countries – though this is not the case in Serbia. Serbia has an independent central bank that implements sound policies”, concluded Mr Bo Li.

Governor Tabaković pointed out the following:

•  Serbia maintained both price and financial stability amid an exceptionally challenging global environment.
•  Since May last year, inflation has been within the target band of 3±1.5%, where it will remain in the coming period, gradually declining toward the target midpoint of 3%.
•  The share of NPLs in total loans was slashed to its lowest level on record (2.46%) in February this year.
•  Serbia is recognised for its exceptionally high FX reserves, measured by all adequacy criteria, with gold making up around 15% of the total.
•  FDI inflow in 2024 reached the record EUR 5.2 bn.
•  The maintained macroeconomic stability and sound policies have made it possible for Serbia to preserve strong GDP growth dynamics of 3.9% in 2024 and achieve one of the best outcomes in Europe, despite significantly weakened external demand.
• Growth in 2024 was led by: personal consumption, supported by higher disposable income and the continued positive trends in the labour market, and fixed investment, driven by the corporate sector’s profitability in previous years, continued high FDI inflow, and more favourable financing conditions.
•  Investment growth in the coming period will be underpinned by the implementation of the projects within the “Leap into the Future – Serbia Expo 2027” programme.
•  New projects in the production of electric vehicles and car tyres, along with new capacities in the energy sector and the gradual recovery of our most important trading partners, will support export growth in the coming period.

Our priorities do not change, despite the global environment that has never been more challenging. Our priority remains to maintain financial and overall stability of the Republic of Serbia, while fully supporting long-term sustainable economic growth. There is no doubt that the built strong buffers – internal and external alike – for which we have received recognition from both investors and rating agencies, will contribute to such an outcome. Further support will come from the maintained relative stability of the dinar-to-euro exchange rate, which has now lasted for over a decade and for which Serbia is recognised globally”, said Governor Tabaković.