The Stand-By-Arrangement (SBA) with the IMF concluded in late 2022 seems to have been an inspired policy choice, as it fostered better-than-expected twin deficits, while foreign direct investments remained strong.
In this context and underpinned by stable ratings, Serbia successfully retuned to capital markets, issuing two Eurobonds in early 2023.
It is not all rosy though, as relatively sound economic policies overlap major other challenges.
In May 2023, the European Parliament voted with a large majority to validate a report which clearly states, among others, that Serbia’s EU integration should be dependent on aligning with the EU on sanctions against Russia and on normalising the relations with Kosovo.
At the limit, this could mean a limbo-time for Serbia until policymakers are ready to take decisive actions on most sensitive issues.
