An International Monetary Fund (IMF) mission led by Albert Jaeger visited Belgrade during October 21–November 4 to hold discussion with the authorities on the 6th review under the Stand-By Arrangement (SBA). At the conclusion of the mission Mr. Jaeger made the following statement today in Belgrade:
"There are encouraging signs that the export-based recovery of the Serbian economy is continuing. Output growth is expected to reach at least 1½ percent this year and 3 percent next year. However, inflation picked up in recent months, owing to volatile food prices and pass-through to prices from exchange rate depreciation. Inflation is projected to exceed temporarily the upper bound of the end-2010 tolerance band (6±2 percent), returning within the band (4½±1½ percent) toward end-2011.
"Performance under Serbia’s SBA has been broadly on track. All end-September 2010 performance criteria were observed. It was also agreed that the pension law would be re-submitted to parliament over the next few weeks, without material changes to the version that had been submitted to Parliament in June 2010.
