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SERBIA - Sustained and sizeable fiscal consolidation effort still missing

Emerging Markets Special Focus Reports

01 Αυγούστου 2013

• Driven by exports of automotives and petroleum products, GDP expanded by 0.5% qoq/+2.1% yoy in Q1-2013
• The prospective cabinet reshuffle is expected to have a negative impact on fiscal consolidation effort
• The consolidated government deficit is widely expected to overshoot the revised target of 5.2% of GDP in 2013
• Monetary easing paused: NBS unexpectedly left interest rates unchanged at 11% on July 11

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