Serbia’s central government debt decreased by 1.6% m/m to EUR24.2bn at the end of April, according to the latest data by the finance ministry. The debt accounted for 67.7% of GDP, down from 72.9% at end-2016. The decrease reflected lower external debt while indirect debt also declined but by much smaller margin. Domestic debt was up by 0.6% m/m. The share of EUR-denominated debt in Serbia’s central government debt stood at 40.1% at end-April, the USD-denominated debt accounted for 33.5%, while the share of RSD debt was 20.8%. The general government debt stood at EUR 24.5bn at end-April, accounting for 68.7% of GDP.
Serbia succeeded in containing public debt growth a year ahead of the plan thanks to the good fiscal performance. The latest debt developments fall in line with the government’s fiscal strategy for 2017-2019. The government expects public debt to fall to 73.9% of GDP in 2017 from 74.6% of GDP in 2016 and decline to 67% or GDP by 2019 when the full effect of the fiscal consolidation measures will be felt.