BELGRADE (Reuters) -The International Monetary Fund and Serbia have reached a staff-level agreement on the second review under a 36-month arrangement to help support economic reforms in the Balkan country, the IMF said on Thursday.
The so-called Policy Coordination Instrument was signed in October 2024 to make it easier for Serbia to secure lending from other sources.
Under the arrangement, Serbian authorities are committed to a fiscal deficit limit of 3% of gross domestic product over three years.
The review will be subject to approval by the IMF Executive Board, the fund said in a statement, which was issued after an eight-day trip to Serbia.
Serbia has seen months of anti-government rallies after 16 deaths from a railway station roof collapse last year triggered accusations of widespread corruption and negligence.
The IMF said Serbia’s economic growth had slowed this year due to global trade tensions, domestic political uncertainty, and the U.S. sanctions on NIS oil company.
“Poor harvests also pushed up food prices, though headline inflation eased to 2.9% in September after temporary price and margin controls,” it said.
Growth for 2025 is projected at 2.1%, before recovering to around 3% in 2026 as investment and exports strengthen, supported by higher household incomes and stable financial conditions.
The IMF said Serbia’s foreign exchange reserves remain ample and public debt moderate.
(Reporting by Ivana SekularacEditing by Ros Russell)
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