Serbia 2021 GDP, Gross Domestic Product has been projected to grow at 5 percent
OpenLife Nigeria reports that the 2021 Gross Domestic Product, GDP of Serbia, a landlocked country situated at the crossroads of Central and Southeast Europe in the southern Pannonian Plain, is projected to contract by 1.5 percent in 2020 and recover in 2021 with growth at 5 percent.
This is the disclosure of International Monetary Fund, IMF Executive Board members who have completed the Final Review Under the Policy Coordination Instrument for the Republic of Serbia.
This online medium gathered that
Program implementation has remained on track throughout the PCI that will expire in January 2021.
Due to the COVID-19 pandemic, Serbia’s real GDP is projected to contract by 1.5 percent in 2020 and recover in 2021 with growth at 5 percent.
The 2021 budget appropriately balances support for economic recovery with fiscal responsibility.
OpenLife Nigeria further gathered that the recent acceleration in infection rates in Serbia and its major trading partners could negatively impact the nascent recovery and a stronger-than-expected infection wave presents a clear downside risk to the outlook. The quantitative targets for end-September 2020 were met and sufficient progress was made in meeting the structural reform targets. Inflation remains close to the lower limit of the National Bank of Serbia’s inflation band.
The fiscal deficit in 2021 is planned at 3 percent of GDP, and would help ensure that public debt in percent of GDP resumes a declining path, while also creating enough space to support the recovery, including through higher public investments. Within this envelope, increases in public sector wages should be limited and pension increases are expected to follow the agreed Swiss formula. The unwinding of support measures could be made more gradual if further shocks materialize.
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