The IMF reached a staff-level agreement with Serbian authorities on the fourth review and final of the existing SBA and on a 36-month PCI. Economic growth is expected at a robust 3.9% this year. The budget deficit is set to reach 2.7% this year, but public debt is expected to drop to 48% of GDP in 2024. The main risks to the Serbian economy are external, including energy costs, geopolitics, and climate change. Under the PCI, Serbia has committed to cap the fiscal deficit at 3% of GDP over this period, which should help reduce the public debt burden.