IMF and CCIS: Import and Energy Source Prices, Export and Inflation Are Greatest Challenges Faced by the Economy of Serbia

The members of the delegation of the International Monetary Fund (IMF) mission that is on a visit to Serbia headed by Jan Kees Martijn have discussed with representatives of the Chamber of Commerce and Industry of Serbia (CCIS) about macroeconomic and financial stability, investment environment and challenges lying ahead of the economy of Serbia due to the Ukrainian crisis and global disruptions in markets.

As it has been emphasized at the meeting, the economy of Serbia is also mostly concerned about the problems faced by the EU economy, such as import and an increase in the price of energy sources and other raw materials, export activities, supply chains, and inflation.

“Serbia shares the fate of entire Europe and European companies, and it is of utmost importance to consider precisely what industries are at highest risk, where the country can help to overcome the crisis in the easiest way possible, and what can be alarming”, said Mihailo Vesović, Director of the CCIS Division of Strategic Analyses, Services, and Internationalization, following the discussion with the IMF representatives.

At the meeting in CCIS, the attendees have also discussed how the economy of Serbia deals with the current crisis, what consequences and effects are expected to be on the so far expedited development and growth of Serbia’s GDP.

This is the first time the IMF mission has an official meeting with representatives of the Chamber of Commerce and Industry of Serbia, which is a very important message that they want to hear and take into account the views of our economy at this very specific momentum, emphasized Vesović.

Milun Trivunac, an Advisor to CCIS President, pointed out that as for the export side, our agricultural sector was affected most because the share of the agricultural industry amounted to one-third in the total Serbian exports to the Russian market.

In addition, the crisis in the supply of chemical and petroleum products can have a huge impact on the sector of agriculture, particularly on small and medium-sized enterprises.

An increase in fuel price, which is one of the primary inputs in agriculture, will have far-reaching consequences and impact on the production price of agriculture produce, said Trivunac, and added that alternative and sustainable solutions are tried to be found through a dialogue with the Serbian Government and competent institutions.

 The IMF mission is on a visit to Belgrade on the occasion of the second revision of the arrangement with Serbia that started in June last year with the aim to support the further implementation of the structural reforms, macroeconomic and financial stability. This IMF advisory arrangement, the Policy Coordination Instrument – PCI, will last by the end of 2023 and does not imply financial support.