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The Government of the Republic of Serbia

In the service of citizens

Serbia shows stability, possibility of quick recovery amid pandemic

Belgrade, 20 April 2021

Prime Minister Ana Brnabic talked today via video link with Head of the International Monetary Fund (IMF) Mission Jan Kees Martijn about a new advisory arrangement that will be signed with this international institution, aimed at implementing and completing structural reforms and preserving fiscal stability.

Brnabic informed the Head of the IMF Mission that better results were achieved in the first quarter of this year than planned in the 2021 budget.

In view of that, Serbia is expected to achieve the projected annual growth of six percent, first and foremost owing to large capital projects and investments in infrastructure, Brnabic said.

The Prime Minister voiced the hope that thanks to the success of vaccination in Serbia, the further opening of the domestic economy will be possible.

Speaking about the economic growth in 2021, Martijn underlined that Serbia has shown stability and ability for quick recovery, despite difficult conditions amid the pandemic.

He assessed that the results achieved last year were better than expected thanks to the package of economic support to the economy, and added that what awaits us in the coming period, which will be the backbone of the new arrangement, is the reform of public companies and the continuation of the tax administration reform.

The Prime Minister informed the Head of the IMF Mission that Serbia has already taken the first step in the reform of public enterprises, by adopting the Strategy of State Ownership and Management of Business Entities Owned by the Republic of Serbia for the period from 2021 to 2027, followed by the adoption of an action plan.

Speaking about the fight against the gray economy, she pointed out that the state is working on the introduction of online fiscalisation, which is defined through the recently adopted Law on Fiscalisation, which will enable more efficient suppression of the gray economy and control by the Tax Administration, as well as better tax collection.

Regarding the new arrangement with the IMF, Brnabic stated that Serbia's priorities are greater investments in the environment, science and innovation, as well as capital projects, which will contribute to stable financial growth in the years to come.

She stated that, bearing in mind the economic crisis after the pandemic, the new arrangement is of exceptional importance, because it provides our country with credibility, transparency and trust of foreign investors.

Stating that the second half of the year too will be full of challenges, the interlocutors agreed that it is important to find the best balance between the health of citizens and the protection of the health system on one side and economic activity and the preservation of the economy on the other.