One of the main tasks for the Serbian government lead by the Progressive Party (SNS) has since 2014 been to recover the down faulting Serbian economy. The Serbian government initiated in 2014 a number of economic reforms. Stabilising the state budget was a key element which resulted in large cuts of the public sector. The primary positive result has been a budget deficit under control. The budget deficit decreased from 6.6 % in 2014 to 3.3 % in 2015. IMF is expecting the budget deficit to be 2.5 % in 2016.
Serbia’s economic growth or GDP is now positive after a period of negative growth which was caused especially by the world financial crises. In 2015 the GDP grew by 0.7 % regardless of the large cutbacks in the public sector. The forecast for 2016 is an increase in GDP of approx. 2.5 % in 2016 and 2.7 % I 2017. A positive trend which IMF and other financial institutions is expecting to continue in the years to come if Serbia continues its economic reforms.
The main economic drivers of the Serbian economy and its growth are among others the increase in direct foreign investments (FDI) as well as the increase in foreign trade. The value of the Serbian export and import have grown significantly in the past years. The value of exports in 2015 amounted to EUR 12 billion, which was an 8 % increase when compared to 2014. The value of imports amounted to EUR 16.4 billion, which was around 6 % increase relative to 2014. Same positive tendencies are seen in the first months of 2016 as well.
The inflation in Serbia has been stable around 2.0 % the past years. In 2015 the inflation rate in Serbia was 1.4%. The IMF has projected the inflation for 2016 to be around 1.3%.
Read more about the Serbian economy and financial situation on IMF’s Serbia page