The Serbian government has adopted a 2023 fiscal strategy including projections for 2024 and 2025, under which Serbia will see 3.5 pct economic growth this year despite the global economic crisis, which means that there will be no recession, the Ministry of Finance said on Friday.

Among other things, the strategy notes that Serbia has coped well with the health and economic crisis caused by the pandemic and that cumulative GDP growth of 6.4 pct has been registered in the two years of the pandemic, which is one of the best performances in Europe.

It said three government stimulus packages had helped the liquidity of businesses and facilitated business operations, and that financial assistance to citizens had encouraged domestic demand, which had, in turn, produced an indirect impact on economic activity.

It said growth of economic activity and the stimulus packages had resulted in stable labour market trends.

Jobs and earnings have been preserved in the private and the public sector alike, and the 2021 unemployment rate was below the pre-pandemic level.

At the same time, the internal and the external balance remained unaffected and FDI inflow was stable, ensuring more than full coverage of the current account deficit, the ministry said.

An increased expansivity of fiscal policy has not jeopardised the sustainability of public finances, while improved collection of revenues – in particular, taxes – has helped to maintain fiscal stability due to faster-than-expected economic growth, the ministry also said.