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However  the Serbian economy is still facing serious challenges as unemployment rate is high and rising  while output and investment remain weak  the head of the IMF mission here  Albert Jaeger  told reporters.
 "The (economic) crisis demonstrated that Serbia cannot afford to return to its pre-crisis model of growth" based on high consumption and low domestic savings and low exports  Jaeger said.
 Serbia should "follow the example of more successful economies in Eastern Europe " he said  adding that "Serbian policy makers now face a clear choice."
 "They can return to pre-crisis growth model that is unlikely to produce sustained and stable growth  or to take painful and sometimes politically difficult measures that will make the economy more competetive  raise domestic savings and give the dinar better chance to compete against the euro " Jaeger said.
IMF to release Serbia loan tranche