Belgrade - Serbia needs to curb spending and continue economic reforms in order to keep inflation under control through next year, the International Monetary Fund (IMF) warned Wednesday.
Serbia is lagging with privatization and structural reforms, and its government faces pressure to meet election promises of increased spending, the head of an IMF delegation, Albert Jaeger, told reporters.
Overspending is expected to push Serbia's current account deficit to 18 per cent of gross domestic product by the end of the year, which it must cover by borrowing abroad.
The IMF said Serbia should seek to cut the deficit to 10 per cent of GDP in the mid-term.