INTERVIEW
SEBASTIAN SOSA, IMF RESIDENT REPRESENTATIVE IN SERBIA
Sound Fiscal Policy Remains A Priority If the global crisis deepens, it will further impact Serbia through weaker external demand, the continued disruption of supply chains and tighter financing conditions. Under such circumstances, it would be crucial to have well designed public investments and a sound fiscal policy for maintaining the economy on the right track
T
here is no sign at present that the economic crisis triggered by COVID-19 will soon be in the past tense. Under such circumstances, it seems reasonable to discuss all possible scenarios of the development of the crisis and conceivable policy responses in the given situation. In this interview, IMF Resident Representative in Serbia Sebastian Sosa offers valuable insight into the options available to Serbia.
4
August
• What are the best- and worst-case scenarios when it comes to Serbia’s GDP growth in 2020? - Notwithstanding a sizeable policy response, the pandemic has had a significant adverse impact on Serbia’s economic activity, and we project real GDP to contract by three per cent in 2020, compared to the four per cent increase projected prior to the outbreak. The pandemic is hitting the economy mostly through reduced
