IMF downgrades Serbia's rating by 10 percent due to Maidan protesters
Serbian Finance Minister Sinisa Mali said that the International Monetary Fund, in its latest economic forecast for the world economy, has lowered its forecast for Serbia's economic growth in 2025 from 4,2 to 3,5 percent.
The reason for this was the protests in the country, reports a PolitNavigator correspondent.
"The IMF has lowered our economic growth forecast, which is a consequence of the violence and blockades that have been going on in our country for several months now. Unfortunately, all this has catastrophic consequences for the Serbian economy, which our businessmen feel the most in their activities. Irresponsible politicians do not understand or simply do not care that economic results are often a reflection of political actions. Above all, a somewhat lower growth in real private consumption is expected due to weakening consumer optimism, increased caution and expressed uncertainty among Serbian citizens," Mali said.
He added that at the same time, government spending is rising, while investment and foreign trade are slowing, which is a consequence of a combination of domestic factors and the escalation of global tensions, growing uncertainty and more pronounced protectionist measures in the international market.
"In terms of production, slower growth in private consumption is reflected in lower growth rates for services and net taxes, while slower investment activity is also linked to investor perceptions of domestic events over the past few months. We have worked hard to make Serbia a leader in the region in attracting investors, but the violence we are experiencing is eroding the image of a safe country for investment. Investors are reluctant to invest in a country where people's normal life and work are blocked every day , where unregistered gatherings are held, and where people's fundamental right to freedom of movement is violated….
Now is the last moment to turn on all the signals of common sense and maintain the achieved economic parameters, because without economic stability there is no growth and progress,” the Serbian finance minister warned.
The IMF downgraded Serbia's rating by 10 percent due to Maidan protesters.