Serbia’s GDP will grow 3.6% this year – Public debt 51.5%

Serbia’s public debt could reach 51.5 percent of gross domestic product at the end of the year, which is slightly higher than current levels, estimates Jakub Kratky, financial analyst at Generali Investments.

“As far as the debt is concerned, it will end up at around 51.5 percent of the gross domestic product at the end of the year. Although the government should maintain a relatively high level of capital investment, which is good for the future growth potential, high economic growth should help to reduce the share of debt in GDP. On average, GDP growth of 3.6 percent is expected this year,” Kratky told Bloomberg Adria.

Serbian Ministry of Finance said on Tuesday that the share of Serbia’s public debt also fell in April.

In April, the public debt amounted to 36.3 billion euros, or 47.6 percent of the gross domestic product for the year 2024, according to official data.

The public debt was also slightly reduced in March. Preliminary data for June 4 show that the state of public debt on this day is also 36.3 billion euros.

In addition to these data, the Ministry of Finance also published data on the state of the budget, where a deficit of 29.5 billion dinars was recorded in the first four months of the year.

Also, the Serbian government authorized BNP Paribas SA, BofA Securities Inc., Deutsche Bank AG, Mitsubishi UFJ Financial Group Inc. and Raiffeisen Bank International AG, as joint lead managers, to launch a call to global investors on Tuesday for the benchmark bond issue with 10-year maturity.

In April, S&P Global Ratings raised the outlook for Serbia’s long-term debt in foreign currency, which is now at the BB+ level, that is, one level below the investment rating. S&P also noted strong macroeconomic results in 2023 and possible further improvements in external and fiscal performance.

(Bloomberg Adria, 06.06.2024)

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