Serbia continues to make substantial progress in implementing the SBA supported economic program, which is yielding strong results. The recovery is picking up pace, fiscal and current account deficits are on decline and employment is gradually increasing. The public debt already reached a turning point in 2015, and is expected to steadily decline going forward. Growth is driven mostly by private investments and diversified exports. Substantial fiscal consolidation and structural reforms implemented under the program helped regain confidence and boosted private investments. Improved economic conditions and a positive outlook led to the declining sovereign risk premia, as recognized by the recent upgrade of Serbia’s credit rating by Fitch. The incumbent coalition maintained the absolute majority which provided a renewed mandate to the authorities to continue with the implementation of challenging but necessary economic reforms. Serbia is continuing with a tangible progress in the EU integration process as two additional chapters were opened in July 2016. The Serbian authorities remain firmly committed to the program and its objectives and confirm their intention to treat it as precautionary.