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Republic of Serbia: Selected Issues

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  • International Monetary Fund

Abstract

This Selected Issues paper highlights past, current and future drivers of Serbia’s growth and suggests reforms to enhance productivity. It analyzes recent economic developments and future growth prospects. The paper also offers a diagnosis on structural deficiencies in Serbia for multiple areas, while providing policy recommendations to address those deficiencies, together with an analysis of possible gains from implementing structural reforms. Serbia has grown at a rate comparable to peers over recent decades, but the income gap with the EU, albeit narrowing, remains large. As contributions from labor and capital to potential growth are expected to decline, Serbia needs to accelerate structural reforms to boost total factor productivity. Successful implementation of structural reforms could yield substantial benefits. Key policy options include those that strengthen governance, reduce state influence in the economy, address skill mismatches, enhance assess to finance among firms, and promote research and development and innovation.

Suggested Citation

  • International Monetary Fund, 2025. "Republic of Serbia: Selected Issues," IMF Staff Country Reports 2025/177, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2025/177
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