Standard & Poor’s upgrades Serbia’s credit rating outlook

S&P Global Ratings said it has upgraded its outlook on Serbia to positive from stable on improved fiscal and external profile while affirming the country’s ‘BB+/B’ long- and short-term foreign and local currency sovereign credit ratings.

 “The positive outlook reflects Serbia’s strong macroeconomic outcomes in 2023 and the possible further improvements in its external and fiscal performance,” S&P said in a statement on Friday, adding it projects the country’s real gross domestic product (GDP) to expand by 3.3% in 2024 and to accelerate to 3.8% on average over 2025-2027.

The rating agency noted Serbia’s transfer and convertibility assessment is ‘BBB-‘.

In October, S&P estimated the country’s 2023 GDP growth at 2.1%, anticipating that it will quicken to roughly 3% on average over 2024-2026.

The Serbian economy expanded by 2.5% in 2023, statistics office figures showed earlier this year. The Serbian government said in January it sees Serbia’s economic growth quickening to 4.3% in 2026, from a projected 4.0% in 2025 and 3.5% in 2024.

Also in January, the World Bank said it expects Serbia’s economy to expand by 3% in 2024, and by 3.8% in 2025.

“Resilient economic growth should allow the Serbian authorities to improve fiscal metrics,” S&P said on Friday. “Stronger external buffers alongside ample and increasingly diversified net foreign direct investment should help Serbia to mitigate possible balance of payments risks.”

(Danas, 08.04.2024)

This post is also available in: Italiano

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