Republic of Serbia

Recent economic developments. Notwithstanding some temporary supply shocks, economic activity remains robust, supported by recovery of private consumption and strong FDI. Significant fiscal over-performance has continued and efforts to address structural weaknesses have been accelerated. This, along with a healthy credit recovery on the back of substantial monetary policy easing, has helped support growth, while low inflation has reinforced recovery in real incomes. Public debt has fallen notably and external vulnerabilities are reduced.