Serbia Economic and FDI Outlook slide image

Serbia Economic and FDI Outlook

Fiscal Developments in 2023 were Better Than Expected National Bank of Serbia In 2023, the consolidated deficit was RSD 181.1 bn (-2,2% of GDP) Chart 21 General government revenues, expenditures and outcome (% share in GDP) Public debt remains on a downward trajectory and within the Maastricht criteria Chart 22 Public debt (central government) (% share in GDP) 50.0 6.0 80.0 70.0 67.8 4.0 70.0 45.0 57.9 57.0 56.5 1.1 0.6 2.0 60.0 53.7 55.1 51.9 52.0 47.8 40.0 .0 50.0 -0.2 40.0 35.0 -1.2 -2.0 -2.2 30.0 -3.2 -4.0 30.0 -3.5 -4.1 Примарни резултат, д.с. 20.0 -5.1 25.0 -6.4 -6.2 укупни биланс: 20.0 -6.0 Фискални резултат, д.с. 10.0 Приходи, л.с. -8.0 Расходи, л.с. -8.0 .0 -10.0 2015 2016 2017 2018 2019 2020 2021 2012. 2013. 2014. 2015. 2016. 2017. 2018. 2019. 2020. 2021. 2022. 2023. Other SDR CHF EUR USD RSD 2022 2023 February 2024 Public debt • . • Although Serbia eliminated fiscal deficit in the years before pandemic, higher deficit in 2020-2022. arose as a result of higher expenditures due to the pandemic and a package of measures to support the economy and the population, and in 2022, support to companies from the energy sector. In 2023, the general government budget deficit amounted to RSD 181.1 bn (-2.2% of GDP) and was thus lower compared to the plan from the revised Fiscal Strategy (- 2.8% of GDP) as a result of lower current expenses. Share of capital expenditures was kept at around 7% of GDP. • In the period January-February 2024, a consolidated surplus of 10.5 billion dinars was achieved. In medium term, we expect its return to the level of around 1.5% of GDP. As of 2021, the share of public debt in GDP is on a downward trajectory, despite the impact of the international energy crisis on the growth of budget expenditures and energy procurement. At the end of 2023, the share of central government public debt in GDP amounted to 52.0% (general government public debt 52.3%) and decreased by 3.1 pp relative to 2022. At the end of February 2024, the share of the public debt of the central government amounted to 47.8% (general government public debt 48.2%) and thus further decreased compared to the end of 2023, mostly due to the higher projected nominal GDP for 2024. • We expect that as a result of the lower deficit, the public debt will continue its downward trajectory in the coming, years. 13
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