IMF: PCI review completed

“The Executive Board of the International Monetary Fund concluded the Second Review under the Policy Coordination Instrument for the Republic of Serbia. The authorities have consented to the publication of the Staff Report prepared for the review,” a press release said.

It said that Serbia’s economic activity slowed amid rising domestic and external challenges. “Real GDP growth is estimated at around 2 percent in 2025, before recovering to 3 percent in 2026. Headline inflation has eased to below the National Bank of Serbia’s target of 3 percent. The current account deficit is expected to widen in 2026, reflecting higher fuel import costs and EU restrictions on steel imports, before moderating from 2027” it added.

The IMF warned of elevated downside risks but added that those riske are mitigated by prudent macroeconomic policies and sizable buffers. “Ample foreign exchange reserves, government deposits, and a resilient well-capitalized banking sector provide important support in navigating current challenges. Resolving the sanctions on the macro-critical oil company NIS would further reduce uncertainty,” it said.